Éamon Ó Cuív (Galway West, Fianna Fail)
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Question 44: To ask the Minister for Finance in view of his stated intention to impose losses on unsecured senior bondholders in Anglo Irish Bank and Irish Nationwide Building Society subject to the agreement of the European Central Bank, if he intends to bring forward specific legislation to facilitate such a move. [18572/11]

Michael Noonan (Limerick City, Fine Gael)
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I have indicated to the House that, consistent with Government policy, I will raise the issue of burden sharing which will allow for the imposition of loses on unguaranteed and unsecured senior bondholders in Anglo and INBS with the IMF and EU authorities in the autumn. The Government will not take any unilateral action in this area, but will work with our external partners to explain our perspective and hear their views. While legislation is in place to provide for burden sharing with subordinated debt holders under the Credit Institutions (Stabilisation) Act 2010 there are currently no provisions on the statute book to specifically provide for burden sharing with senior bondholders. If action is to be taken on this matter I will of course bring forward legislation to facilitate the imposition of losses on the senior bondholders of Anglo Irish Bank and INBS.

I would emphasise that Government policy remains that all senior bondholders in AIB/EBS, Bank of Ireland and Irish Life and Permanent will be repaid in full.