EU promises laws to ensure bondholders can take a hit

IRELAND will be one of the first countries to introduce new legislation that will see bondholders taking a hit if banks get into trouble, but it will come too late for taxpayers who are shouldering most of the burden in the current crisis.

EU officials confirmed that the €10 billion set aside to recapitalise the country’s banks will be in addition to the €45bn already spent on them.

And for the first time Permanent TSB is also expected to receive some state funding to ensure it and AIB, Bank of Ireland and the EBS have 12% of capital funding ratio.