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IBRC set to repay €1.25bn bond

THE bank formerly called Anglo Irish Bank will honour its upcoming bond repayments, its chairman has said.

Alan Dukes, who chairs Irish Bank Resolution Corporation (IBRC), which replaced Anglo earlier this year, said he expects the company to make an upcoming €1.25bn bond payment. In a radio interview yesterday, he said the nationalised lender operates within general government policy and "we have to match up to our commercial contracts."

He added it may be possible to wind down the controversial lender within the planned 10-year time frame. Bond repayments by the nationalised banks have been a controversial topic for sometime.

Last October the government authorised a €1bn repayment to Anglo bondholders at full value, and was accused of breaking election promises to impose losses on bank debt holders.

Anglo and Irish Nationwide will have debt repayments on senior unguaranteed unsecured bonds maturing this year.

IBRC is being wound up along with Irish Nationwide, at a cost of some €34.1bn to taxpayers -- more than half the total €63bn cost of recapitalising the five main Irish banks.

Irish Independent