Noonan asserts commitment to paying back debt

FINANCE Minister Michael Noonan firmly committed the taxpayer to paying back “to the last red cent” all the money lent to the Irish state and the two pillar banks of AIB and Bank of Ireland — but not to unsecured bondholders in Anglo Irish Bank.

Mr Noonan’s statement firmly revokes pre-election promises to burn unguaranteed bondholders and came hours after markets reacted negatively to his announcement in Washington on Wednesday that he will explore haircutting the Anglo bondholders.

The minister clarified his statements yesterday, saying there was no change in Government policy and the European Union/International Monetary Fund rescue loan programme was being fulfilled completely.