No losses for senior debt holders

FINANCE MINISTER Brian Lenihan has reiterated that the Government does not plan to impose losses on holders of senior debt at any of the country’s credit institutions, the country’s debt agency said yesterday.

Mr Lenihan also said any reorganisation of subordinated debt would apply only to institutions which are not listed on a recognised stock exchange, are in 100% state control and could not survive in the absence of total state support.

“There has been some uncertainty among market observers and participants about the intended treatment of subordinated debt in issue from Irish banks,” the National Treasury Management Agency said in a statement. Ireland’s financial regulator warned against imposing losses on senior bond holders hit by the collapse of Irish banks, but said that did not rule out talks aimed at agreeing a deal.