Burton rules out paying Anglo junior bondholders

Tánaiste says Irish people ‘well ahead’ in queue to be repaid money from failed bank

 Tanaiste and Minister for Social Protection Joan Burton. Photograph: Gareth Chaney/Collins

Tanaiste and Minister for Social Protection Joan Burton. Photograph: Gareth Chaney/Collins

 

Tánaiste Joan Burton has said she will not stand over a payout to junior bondholders of Anglo Irish Bank.

Mr Burton also said the Irish people are “well ahead” in the queue to be repaid money from the failed bank.

Minister for Finance Michael Noonan told the Dáil earlier this week that if the junior bondholders in Anglo “submit a claim and it be found to be valid, then they will legally be entitled to a dividend provided there are sufficient funds available”.

Mr Noonan also said it is not clear if the junior bondholders will pursue claims of €280 million and “if there will be any money left over when other unsecured creditors are paid”.

Speaking on RTÉ’s The Week in Politics today, Ms Burton said such repayments are “completely unlikely to happen”.

“Because in the queue, ahead of those junior bondholders, well ahead are the Irish people in terms of all of the money that that failed bank and that disastrous decision by Fianna Fáil to have the bank guarantee,” Ms Burton said.

When asked if she would stand over junior bondholders being repaid, Ms Burton replied: “No. Absolutely not.

“And I don’t see any way in which it is going to happen because first of all the people of Ireland have to be repaid all that they have put into those entities.”