Gilmore backs Noonan over banks

THE BURDEN on Irish taxpayers for the losses incurred by banks “must be minimised”, Tánaiste Eamon Gilmore has said as he backed comments by Minister for Finance Michael Noonan about burden-sharing by senior lenders.

Mr Gilmore told the Dáil Mr Noonan was reiterating Government policy on burden-sharing or “burning” senior bondholders in his comments about saving Irish taxpayers’ money.

Mr Noonan said in Washington on Wednesday that he had got the support of the International Monetary Fund for a plan to seek a substantial discount from senior lenders on about €3.1 billion of Anglo Irish Bank debt and €600 million of Irish Nationwide debt.

Mr Gilmore said the Minister “expressed the Government position on which we have been absolutely consistent, which is that the burden on the Irish taxpayer for the losses that have been incurred by the banks must be minimised”.

The Tánaiste added: “He has made it clear that that’s a matter that will be discussed with the European Central Bank in particular and with the European commission. The issue of legislation required to implement will obviously follow those discussions.”

He was responding to Sinn Féin deputy leader Mary Lou McDonald, who hoped Mr Noonan’s comments were a “mark of a realisation” that “senior bondholders have to be dealt with, rather than a stunt to mark your 100 days in office”.

She hoped his “efforts in respect of burden-sharing will meet with much greater success than your failed efforts to get a reduced interest rate on the deal”.