The surprise announcement yesterday by Minister for Finance Michael Noonan that the Government would seek to impose “substantial losses” on senior Anglo and Nationwide bondholders was picked up by media outlets across the globe.
The Financial Times reported that the Government "had revived a demand that some senior bondholders be required to take losses to lessen the cost of Ireland's bank rescue".
“Until now it [the Government] has indicated it would not impose losses on senior lenders, after objection from the European Central Bank,” its front-page report said.
Bloomberg reported that Ireland had "opened a new front in the drive to restructure debt on the euro area's periphery" which it said added to the European Central Bank's concerns as it tries to head off another wave of financial turmoil.
A blog on the Guardian's website asked if Mr Noonan had been "stung into action" by criticism that he is too weak in Europe. "He has just announced in Washington that he is now looking to impose losses on senior bondholders in Anglo Irish Bank and the Irish Nationwide Building Society," it added.
Financial Times Deutschland said: "The participation of investors in the debt disaster plays a central role in the Greek question. Creditors of Irish banks are now threatened with losses, despite a promise from the government – and against the wishes of the ECB."
Reuters news agency said the Government wants private investors to shoulder part of a €70 billion bill for bailing out its banks but has until now "shied away from targeting senior bondholders in the face of opposition from the ECB."