Oireachtas Joint and Select Committees

Wednesday, 10 June 2015

Committee of Inquiry into the Banking Crisis

Nexus Phase

Mr. Cyril Roux:

Okay, if I understand well ... if I understand well, there were provisions made in the bond contract that ... under which payment would not be made but these were annulled by an English court and it's on the foot of the decision of a UK court that now payment must be made. So, I think the ... look, this is what the Governor told me, I haven't looked in the case. I understand that a case can, you know, that the basis of his exchange with the Department of Finance, that a case can still be made based on the published intention of the Government at the time the contract was written. So, this is contract law, this is exactly, I think, I would say, this is exactly the kind of discussions we no longer want to have under BRRD and that's why we're working on resolution plans and we are working so that the securities issued, the bonds that are issued by banks or by their parent, by their holding companies, are very clearly "bail-inable" and we don't have this-----

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