GOVERNMENT WILL TAKE ADVICE ON JUNIOR ANGLO BONDHOLDERS ‘VERY SERIOUSLY’
The Finance Minister says the Central Bank governor’s advice to burn junior Anglo bondholders will be taken ‘very seriously’.
Michael Noonan was speaking after it was reported that Patrick Honohan told the Department of Finance that the ‘moral case’ for returning surplus money from the liquidation of IBRC to the taxpayer is ‘almost unassailable’.
Bondholders owed 270 million euro will be last in line to be paid from the liquidation of over 21 billion worth of Anglo and Irish Nationwide assets.
And Minister Michael Noonan says the Department will consider Patrick Honohan’s advice to block their payment.
“At the end of the process – in two, three, four years time – the issue of junior bondholders will come up, and we’ll take Patrick Honohan’s advice very seriously, if it comes to that” he said.
“But there may not be enough money there anyway, because they come at the end of a hierarchy” he added.