We’re sure we’re not the only ones who’ve noticed a wee bit of inconsistency in Ireland’s attitudes towards burden-sharing for Irish bank bondholders.
“It’s unthinkable that Ireland would default on senior debt or that Ireland’s banks would default on senior debt”
- Brian Lenihan, September 22 (Reuters)
“Much has been said about senior debt obligations in Anglo Irish Bank. The position is that senior debt obligations rank equally with deposits and other creditors under Irish law. I have no plans to change this position. There is, therefore, no question of seeking to impose losses on holders of such senior debt in Anglo or indeed in any other credit institution in the State through any legislative measures. Any alternative strategy as advocated by some creates a significant risk of jeopardising the banking system’s and indeed the State’s access to international debt markets and cannot be countenanced on that basis.”
- Brian Lenihan, September 30 (Minister’s Statement on Banking)
“I know that there is keen debate about the position of senior bond holders. The Government has made its position clear on this matter and it does not intend to impose losses on senior bond holders. However, this does not rule out the possibility of some negotiations or a liability management exercise agreed by consent.”
- Matthew Elderfield, October 6 (Opening Statement)
Brian Lenihan, Ireland’s finance minister, told the Financial Times while on a roadshow in New York that he still opposed senior debtholders having to accept any losses as part of the €50bn (£43.7bn) bail-out announced two weeks ago . But if Anglo Irish Bank and Irish Nationwide building society wanted to enter into “amicable discussions” with senior debtholders he would back the talks.
“Can there be discussions between banks and senior bondholders for mutual advantage? Of course there can be . . . [I would encourage them] if it is for mutual advantage, yes.”
- Brian Lenihan, October 12 (FT)
Markets say what?
And bondholders say — let’s schedule a conference call.
Bingham McCutchen, a London law firm representing interests in Irish Nationwide 2012 senior notes and sub-debt notes due in 2016, is slated to hold a call at 4pm GMT this Thursday, according to a press release from the firm.
Related links:
Abramovich vs Ireland - FT Alphaville
The fate of Anglo Irish sub-debt – FT Alphaville
Anglo, INBS bondholders to form new action group - Irish Independent