Brian Lenihan Jnr (Dublin West, Fianna Fail)

-----senior bondholders. I am now turning to senior bondholders in answer to her question. Senior bondholders, in turn, have two categories. Some senior bondholders in the banks have obtained Government guarantees on the bonds in question, under the previous guarantee or under the eligible liabilities guarantee, ELG, scheme. There are guaranteed bonds and un-guaranteed bonds. It is important that we make this clarification.

The Government raised the issue in the course of the negotiations as to whether such un-guaranteed bondholders could be subjected to a discount. That issue was examined. The Government made a case in that regard. Deputy Burton asked about the response to that case. She should understand that the European Commission is the lead partner in the discussions. The IMF is there to assist, as is the European Central Bank. A common position is arrived at by the negotiating team on the other side. It is important to understand that. One cannot unilaterally come to an arrangement with the IMF. It does not make unilateral arrangements with European countries without reference to the European Commission with whom it co-operates in these negotiations. If there was a difference of emphasis between the different parties on the other side to the negotiation that is a matter they resolve among themselves. It is not a matter I can resolve. The position as communicated to me by the Commission was that were we to look at un-guaranteed senior debt a programme would not be possible. The European Central Bank was of the same view. Naturally the IMF look at all the options, as the Government did.

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