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Wed 03 Mar 2011New government will have to abide by deal, says Rehn

BAILOUT CHANGES:THE EUROPEAN Commission has ruled out any move by the incoming government to compel senior bondholders to bear losses on their investments in Ireland’s banks.

Although Fine Gael and Labour each pledged during the election they would impose losses on the holders of senior bank debt, economics commissioner Olli Rehn made it clear yesterday such a manoeuvre would not find support in Europe.

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