Bank Guarantee Scheme

Dáil Éireann Debate, Tuesday - 2 November 2010

Tuesday, 2 November 2010

Questions (127)

Kieran O'Donnell

Question:

165 Deputy Kieran O’Donnell asked the Minister for Finance, in view of the Financial Regulator’s statement to the Joint Committee on Economic Regulatory Affairs on 6 October 2010, that the Government has made its position clear on this matter, that it does not intend to impose losses on senior bondholders, however, this does not rule out the possibility of some negotiations or a liquidity management exercise agreed by consent, if his attention has been drawn to or if he has authorised any such negotiations to take place by any covered financial institution and to provide details of such negotiations, specifying the outcomes and the sums involved. [39644/10]

Written answers

Minister for Finance (Deputy Brian Lenihan)

I wish to reaffirm my Statement of 30 September in relation to the senior debt obligations of Irish financial institutions that these obligations rank equally with deposits and other creditors under Irish law and that I have no plans to change this position. There is no intention to impose losses on holders of senior debt in any credit institution in the State through any legislative measures. I have not authorised, and am not aware of, any covered financial institution in liability management exercise negotiations with senior bondholders.