Noonan: Bondholder burden-sharing saves State
Finance Minister Michael Noonan has revealed that the taxpayer has saved 5bn by burning junior bondholders in the banks.
The money will now be used to help fund the running of the country up to the end of 2013.
Minister Noonan paid tribute to the work of the National Treasury Management Agency (NTMA) for its part in negotiating with bondholders to reduce the burden on the exchequer.
The NTMA stated that the saving takes the pressure off Ireland, allowing more time before the country needs to begin borrowing on international markets again.
"Since its establishment in March 2010, the Banking Unit has engaged with the banks to drive
an agenda of burden sharing with subordinated bondholders and asset disposals," said an NTMA statement.
" In total, these capital generating measures have delivered 12.1bn which would otherwise have had to be provided by the taxpayer.
"This includes 4.4bn in burden sharing since March 31, 2011 following the Central Banks PCAR/PLAR review - a sum expected to rise to some 5bn."
Minister Noonan said discussions in recent months, and further talks over the coming weeks, will see the 24bn bill for recapitalising the banks cut by more than 20%.
Noonans such a hero. Saving 5bn on a debt we shouldn't be paying is great!