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Tue 04 Apr 2011Lenihan says threat of default worried US

THE UNITED States was concerned about a default on debt by Irish banks, according to former minister for finance Brian Lenihan.

He said the US was concerned about credit default swap contracts being triggered, although he did not say why. Credit default swaps are a type of insurance that come into play if a borrower does not repay a debt. Entities holding debt in Irish banks may have credit default swaps with US institutions.

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