LONDON, Oct. 7 (MNI) – The Irish Government has issued a statement
Thursday that clarifies its position regarding subordinated debt in
issue from Irish banks.
Following the Statement on Banking made by the Minister for Finance
on September 30 there has been some uncertainty among market observers
and participants about the intended treatment of subordinated debt in
issue from Irish banks.
In order to clarify the position the Minister has advised that
prospective resolution and reorganisation legislation, insofar as it
affects subordinated debt in issue, will apply only to such debt in
issue from institutions which are not listed on a recognised stock
exchange, are in 100% State control and cannot survive in the absence of
total State support.
The Minister reaffirms his Statement of Sep. 30 in relation to the
senior debt obligations of Irish financial institutions that these
obligations rank equally with deposits and other creditors under Irish
law.
He confirms that he has no plans to change this position and that
there is, therefore, no intention to impose losses on holders of such
senior debt in any credit institution in the State through any
legislative measures.
–London Bureau; Tel: +442078627492; email: ukeditorial@marketnews.com
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