Bank of Ireland insisted bondholders’ €12.2bn debt be guaranteed

More than €12.2bn in junior bondholder debt was only included in the 2008 bank guarantee because Bank of Ireland insisted it would damage the economy if it was left unprotected.

Bank of Ireland argued for the inclusion of the debt in the controversial blanket bank guarantee due to the potential damage it could cause otherwise.

The bank’s former chief executive, Brian Goggin, confirmed he put forward the deeply unpopular call, but said it was because of the impact leaving junior bondholder debt untouched could have had on the rest of the economy.