From Constantin Gurdgiev's Twitterfeed:
This equates to around half of Anglo's senior debt, which is now sovereign debt. Why did the government pay this off on 30 September? What interest rate did we get from the ECB for the 7.9 BN we had to borrow to convert this debt to sovereign debt?It has been confirmed by FR office - Anglo redeemed 7.9bn of bonds on Sept 30 via ECB borrowing. Behind our backs! This is our debt now!
Anglo redemptions were not disclosed by Gov/Pub Officials until after immense pressure from 3 independent analysts, led by Banker Mathews!
Gov approved this transaction while Min Lenihan stood in front of the nation talking ab bailout costs!
And media's failure to uncover this is shameful. Numerous journos were tipped off, but failed to deliver.
Media are running with 15bn in cuts 'Appocallypse' while Gov piling on 8bn of fresh debt on our shoulders overnight!
Only mechanism to change thisnow is to restructure all quasi-Gov (Nama) & banks debts. They boxed us into a corner
I just saw Constantin Gurdgiev's disclaimer:
He's right, he said that Anglo paid it off and that the government approved it.Note of caution - despite claims in the blogosphere, I have never said DofF paid off Anglo bondholders. Anglo paid its bondholders
Gurdgiev is my primary reference here although the headline isn't attributed to him. So on examination of what he said, I think my thread title could be construed as a mistaken interpretation of his words.
As the headline was my interpretation of the sequence of Gurdgiev posts above, and that interpretation is most likely mistaken, the "DOF" in the title should be replaced with "Anglo".
(It could also perhaps be replaced with The Exchequer or The State. Where the DOF ends and Anglo starts is probably debatable. But let's leave that for now.)
In summary the implication that the title is a literal interpretation of Gurdgiev's words is unfair on Gurdgiev.
Other than Gurdgiev, there have been rumours on the Pin and namawinelake that some or all senior debt has been paid by Anglo/the Central Bank/the ECB. I don't know how true these rumours are, but I have mentioned them here:
The Journal carried the story earlier along with quotes from the DOF which indicate that it's an Anglo-only transaction. I posted a section of this article here:
However, I now think that the whole thing was the payment of guaranteed Anglo bonds, as I posted when that possibility was highlighted: