Government to repay in full over €1bn Anglo bonds

The Department of Finance said it intends to go ahead with the full repayment of un-guaranteed, unsecured Anglo bonds worth over €1bn later this month.

The payments are the biggest to be made over the next two years by the Irish Bank Resolution Corporation, the wind-down vehicle for Anglo and Irish Nationwide. They will be made between June 26 and June 28, as an EU summit gets underway during which the burden of bank debt is likely to be discussed. They will also be made one year after Finance Minister Michael Noonan said during a trip to Washington that he would seek to impose losses on senior bondholders who lent to the toxic bank.

Mr Noonan said this week that the IBRC has confirmed that “two unguaranteed senior bonds with a combined principal value of €0.6bn are scheduled to mature on 26 June 2012”.