Government accused of doing U-turn over Anglo bondholders

THE Government has been accused of doing a U-turn on its election promise to burn Anglo Irish Bank bondholders.

Finance Minister Michael Noonan announced before his meeting with the ECB and the European Commission in Poland on Saturday that he was convinced by their arguments and it was not wise to reduce the €3.5 billion owed to senior un-guaranteed bondholders.

Instead, he said, he would ask both institutions and the IMF, when he meets them in Washington later this week, to change the terms of the promissory notes, or IOUs the last government gave in lieu of paying out immediately on Anglo’s €30bn debts.