Ireland Wants Bondholders to Share Bank Burden, Minister Says

Discussion in 'Wall St. News' started by ASusilovic, Mar 28, 2011.

  1. March 28 (Bloomberg) -- Ireland wants to share bank losses with senior bondholders as part of a “final solution” for the country’s debt-laden financial system, Agriculture Minister Simon Coveney said.

    Finance Minister Michael Noonan will seek agreement from European authorities to share losses with bondholders after stress-test results on March 31 determine how much extra capital the banks need, Coveney said. Government-guaranteed banks have 16.4 billion euros in senior unguaranteed unsecured bonds outstanding, Ireland’s central bank said on March 2.

    Ireland’s government wants “a sustainable and comprehensive solution that involves recapitalization, but also an element of burden sharing as well as a funding package for Irish banks,” Coveneny told RTE in an interview yesterday. “A lot of delicate and difficult discussions are going to take place over next two to three weeks, if not slightly longer.”

    Who are Ireland´s senior bondholders? Ze Germans? :) :D :p