The Department of Finance have confirmed that a Hight Court order has been obtained to issue a Subordinated Debt Liability Order to ensure subordinated bondholders share the burden of the capital position of AIB.
In a statement, the Department also confirmed steps were underway to ensure burden sharing by subordinated bondholders in Bank of Ireland and Irish Life & Permanent.The Government’s announcement of 31st March set out that the Government will take all the steps it can to reduce the high level of capital required by the financial institutions from the taxpayer. Today’s action is intended to ensure that AIB’s subordinated debt holders share the burden of the capital position of AIB and reduce the level of capital sought from the taxpayer.
Micheal Noonan TD, Minister for Finance
The Department went on to highlight there are no plans to pursue burden sharing with the senior bond holders of AIB, Bank of Ireland, EBS or Irish Life & Permanent.