Dáil Éireann Debate, Tuesday - 17 November 2015
202. Deputy Micheál Martin asked the Minister for Finance his views on the Government decision announced in Dáil Éireann on 31 March 2011 in relation to bondholders; and if he will make a statement on the matter. [32843/15]
View answerAs I outlined in my evidence to the Oireachtas Banking Inquiry the issue of burden-sharing with senior bondholders in IBRC was seriously considered in advance of my statement on banking matters on 31 March 2011. There was €3.7 billion of unsecured unguaranteed senior debt remaining in Anglo and INBS at that time and the Government strongly pushed for appropriate burden-sharing for these bondholders, conditional on the support of the ECB.
In advance of my statement on banking matters on 31 March 2011, I had explicitly sought ECB support for this proposal and despite our best efforts it was made clear to us that the ECB would not support any attempt to burden-share with senior bondholders in those institutions. Weighing up the potential savings of €3.7 billion that would potentially accrue to IBRC against the immediate and devastating impact of withdrawal of ECB support on Ireland, the Government took the decision not to proceed with the burden-sharing with senior bondholders at that time.
