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Thread: Junior bondholders burned - €5bn saved

  1. #1
    Politics.ie Member DeputyEdo's Avatar
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    Default Junior bondholders burned - €5bn saved

    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 Bank’s 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!

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    Good.

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    Politics.ie Member daveL's Avatar
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    Quote Originally Posted by DeputyEdo View Post
    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 Bank’s 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!
    sounds like he's doing a decent job

    better than Lenihan's pro bank status

    don't quite understand your sarcasm

  4. #4
    Politics.ie Member Thekinghasnoclothes's Avatar
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    Think of all he could have saved if he had been in Merrion St in 2007

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    Politics.ie Member Nano Nagle's Avatar
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    Quote Originally Posted by Thekinghasnoclothes View Post
    Think of all he could have saved if he had been in Merrion St in 2007
    What happened in 2007?

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    Politics.ie Member LDF's Avatar
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    This is a good start with hopefully more to come.

    The Irish Independent reported this morning that the ECB are looking to hire specialists to advise them on their exposure to Irish Banks. It could be something or nothing. I presume Brian Cowen won't be coming out of retirment to get the gig.

    ECB stays tight-lipped over move to hire advisers on Irish banks - European, Business - Independent.ie
    I care about all sorts of crap.

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    Politics.ie Member Berchmans's Avatar
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    Imagine how much would be saved if this government grew a pair and decided to burn the senior bondholders too.

    I'm not holding my breath.
    Those who can, do. Those who can't, teach.
    Those who can't do either, are Sindo columnists.

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    Politics.ie Member Thekinghasnoclothes's Avatar
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    Quote Originally Posted by Berchmans View Post
    Imagine how much would be saved if this government grew a pair and decided to burn the senior bondholders too.

    I'm not holding my breath.
    This burning must be done slowly to extract the maximum amount out of the EU

    The ECB will be burned last, but not before they are drained for all they can be

  9. #9
    Politics.ie Member Berchmans's Avatar
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    Quote Originally Posted by Thekinghasnoclothes View Post
    This burning must be done slowly to extract the maximum amount out of the EU

    The ECB will be burned last, but not before they are drained for all they can be
    Explain the rationale behind this, please.
    Those who can, do. Those who can't, teach.
    Those who can't do either, are Sindo columnists.

  10. #10
    Politics.ie Member Thekinghasnoclothes's Avatar
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    Quote Originally Posted by Berchmans View Post
    Explain the rationale behind this, please.
    You have to comply with the EU to borrow more money, and promise to pay in full whie borrowing. When the day comes that we pay them more than we get from them we announce we cannot service our loans and burn them.

    The saving from interest and debt serviceing will balance the budget

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