Bond holders in Anglo – The facts at December end

Anglo and Minister Varadkar’s pre-election comments regarding money to Anglo:

From time to RTÉ play a clip of Minister Varadkar at a press
conference saying that we would not give Anglo another cent of
taxpayers money.  Thee facts are as follows:

The new government has not given Anglo (now IBRC) another cent.
The €35bn given to it by the last government is enough to cover its
losses and repay its bondholders etc. including the recent €700m
unsecured bond.  They have not sought any more capital from the
government and have not got it.  We did have to give extra capital to
AIB, Bank of Ireland and Permanent TSB to satisfy the PCAR and PLAR
requirements shortly after coming to office.
During the campaign we said that we would impose losses on
sub-ordinated bondholders in the banks unilaterally.  We did exactly
that and imposed losses of approx €5bn on bondholders, which is a lot.

In our manifesto, we went on to say that we would impose loses on
senior bondholders in defunct banks like Anglo and Nationwide but only
in a ‘European Framework’.  Our spokespeople always said that we would
not act unilaterally on the issue of senior bonds.  While we sought
the agreement of the ECB for a ‘European Framework’ to imposes losses
on senior bondholders, we did not get it.

It seems that most members of the public seem to think that we did
give extra money to the IBRC (Anglo) to pay back the recent bond.  We

It could be argued that we could have recouped €700m from the IBRC
if we had instructed them to default on the bond but that is debatable
and it is very likely that the cost of doing so against the insistence
of the ECB would have outweighed the savings considerably.   But that
is a different argument.