Noonan to target senior bondholders at Irish Nationwide and Anglo

The Finance Minister Michael Noonan has said the Government will seek to impose losses on senior bondholders at Anglo Irish Bank and Irish Nationwide.

Speaking in Washington today, Mr Noonan said he has the support of the IMF for the plan, and will now seek the backing of Ireland's EU partners.

Up until now, bondholders in Irish banks have been protected from losses which have been footed largely by the Irish taxpayer.

But Mr Noonan said that the IMF has given its backing to a proposal by the Government to burn the senior bondholders at Anglo Irish Bank.

There is €3.5bn worth of unsecured debt at Anglo and Irish Nationwide which the Minister said are no longer normal banks, but are more like warehouses for bad debt.

Mr Noonan said he would be seeking the support of Ireland's European partners to impose losses on those bondholders.

He also said that he has asked the US treasury secretary Timothy Geitner to support Ireland's effort to seek a cheaper bailout deal from the EU and the IMF.

Mr Geitner has promised to speak to the French Government on Ireland's behalf.