Thursday, April 7, 2011

Ireland: Vincent Browne incorrect on FG policy on Senior Bondholders

Tonight Vincent Browne claimed that the FG Manifesto promised a unilateral  burning of Senior Bondholders.  He promised to produce the  relevant section of the Manifesto. Now of course he failed to do so as there is no such thing in the Manifesto. Here is the relevant section of the Manifesto:

Agreed Procedures for Restructuring the Debts of Troubled Banks: Fine Gael in Government will force certain classes of bond-holders to share in the cost of recapitalising troubled financial institutions. This will be done unilaterally for the most JUNIOR bondholders (owners of preference shares, sub-ordinated debt and similar instruments), but COULD be extended – as PART OF A EUROPEAN-WIDE FRAMEWORK –FOR SENIOR DEBT focusing on insolvent institutions like Anglo Irish and Irish Nationwide that have no systemic importance.

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