Senior bondholder deal could save up to €17bn, claims Kenny

FINE Gael leader Enda Kenny said he believes taxpayers could be saved up to €17 billion by refusing to pay back unguaranteed senior bondholders of the country’s collapsed banks.

He also described the 5.8% interest rate being charged for the EU-IMF loans as “extraordinarily high”, but Taoiseach Brian Cowen ruled out trying to have it reduced, saying “we have to work within the arrangements in place.”

The opposition leader said he would seek a mandate from voters in the general election to renegotiate how the €25bn of unguaranteed debt should be dealt with.