Senior debtors ‘should agree’ to loss talks

SENIOR bondholders of Irish banks should agree to talk about accepting impairments now because they may face greater losses in future, according tostrategists at BNP Paribas.

Ireland is shaping up as a battleground over the rights of owners of senior bank notes because the nation faces a bill of more than €50 billion to prop up lenders.

Finance Minister Brian Lenihan is raising the possibility of talks with investors in senior debt while arguing it “isn’t viable” to inflict losses.