Noonan: Burning bondholders will be seriously considered

The Finance Minister said the Central Bank governor’s advice to burn junior Anglo bondholders will be taken "very seriously".

Michael Noonan was speaking after reports that Patrick Honohan told the Department of Finance that the "moral case" for returning surplus money from the liquidation of IBRC to the taxpayer is "almost unassailable".

Bondholders owed €270 million will be last in line to be paid from the liquidation of over €21 billion worth of Anglo and Irish Nationwide assets.

Minister Michael Noonan said the Department will consider Patrick Honohan's advice to block their payment - but warned that decision is still years away.

"At the end of the process, in two, three, four years' time, the issue of junior bondholders will come up. And we'll take Patrick Honohan's advice very seriously - if it comes to that," the Minister said.

"But there may not be enough money there anyway, because they come at the end of a hierarchy."