Michael McGrath (Cork South Central, Fianna Fail)
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Question 118: To ask the Minister for Finance if his attention has been drawn to the financial consequences for Irish credit unions of the losses imposed by Irish Life & Permanent on junior bondholders; and if he will make a statement on the matter. [15106/11]

Michael Noonan (Limerick City, Fine Gael)
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I am aware that there are significant financial consequences for a number of credit unions resulting from the recent offer by Irish Life & Permanent and I am aware of the background to the initial purchase of the bond in question. It is Government policy to achieve appropriate burden-sharing from holders of subordinated debt in Irish Life & Permanent and it is appropriate that these measures are applied on an equal basis between all such holders of the instruments. There is a clear imperative to minimise the costs to the taxpayer of the Irish Life & Permanent recapitalisation and to do so in a way which recognises the risk-bearing nature of the instruments in light of their subordinated position in Irish Life & Permanent's capital structure.