Information made available by the Department of Finance to Fianna Fáil Spokesperson on Public Expenditure & Reform Michael McGrath TD has revealed that, a mere five days after announcing his intention in to US to impose losses on unsecured, unguaranteed Anglo bondholders, Minister Michael Noonan repaid €14 million of such bonds in full.
In addition, another €36 million of unsecured, unguaranteed senior bonds in Anglo fall due between now and the end of September. A bond of €12 million falls due today and will be repaid. Minister Noonan has said he intends to raise the issue of imposing losses on such bondholders with the ECB in time for the repayment of a $1 billion bond which matures on 2 November 2011.
Deputy McGrath said: “Having made the policy statement on 15 June in the US, it beggars belief that the Minister would continue to repay such bonds without even raising the issue with the ECB. This matter should not wait until the autumn.
“The Minister needs to raise this with the ECB immediately and seek to impose losses on the €36 million to be repaid between now and the end of September. A 50% discount on these bonds would save the State €18 million, money which has to be seen in the context of cuts to the School Transport Scheme, cuts to SNA posts in our schools and the closure of hospital A&E’s.
“Every day the Minister fails to follow-up on this issue with the ECB, the more money Irish taxpayers are paying back to bondholders who the Government doesn’t believe should be getting paid in full. The Minister announced a policy of burning holders in a PR blitz just in time for the government’s 100-day marker but hasn’t followed it up and the government continues to pay Anglo bondholders in full. It is difficult to conclude other than that the statement in the US was designed to do little more than put a positive gloss on the Government’s first 100 days in office, ahead of the set piece by Taoiseach Kenny and Tánaiste Gilmore the following day.” Unsecured, Unguaranteed Senior Debt, Anglo Irish Bank maturing between now and end Sept.
Maturity Date Amount in €
20/06/2011 14,000,00029/06/2011 12,000,00006/07/2011 10,000,00019/09/2011 12,640,00029/09/2011 1,135,100