Banks announce plans to burn junior bondholders

Bank of Ireland, the EBS Building Society and Irish Life and Permanent have announced plans to burn their junior bondholders.

The three lenders plan to get investors to share some of the cost of recapitalisation by paying them between 10 and 20 cent in the euro for their debts.

The Finance Minister Michael Noonan has said the burden sharing announced today is the minimum acceptable to the Government.