The Government’s promise to burn senior bondholders has gone up in a puff of smoke, according to Fianna Fáil Finance Spokesperson Michael McGrath TD.


Responding to Michael Noonan’s comments in Poland yesterday that imposing losses on these bondholders was no longer his ‘primary’ concern, Deputy McGrath said: “The Government has now given up the ghost on imposing losses on the remaining €3.5 billion of unsecured, unguaranteed senior bondholders at Anglo Irish Bank and Irish Nationwide Building Society (INBS).


“This is in sharp contrast to Fine Gael’s pre-election promise not to give another cent to the banks without burden sharing with senior bondholders. In truth, the Government has put a further €17 billion of taxpayer’s money into the banks without getting senior bondholders to contribute a single cent. The promise to burn senior bondholders joins the ever-growing scrapheap of broken pre-election promises.


“On the eve of the Government’s 100th day in office, amid much publicity, Michael Noonan announced that the Government would be seeking to impose losses on senior bondholders at Anglo and INBS. This statement can now be seen for what it was – a naked attempt to put a gloss on the Government’s first 100 days in office.


“The Government will now proceed to repay unguaranteed senior bondholders in Anglo €700 million in the first week of November – just weeks before announcing a tough budget in early December. It is now clear that Fine Gael and Labour misled the Irish people with a series of promises they never had an intention of implementing.”