Saturday 25 November 2017

Is the Government about to burn Bank of Ireland bondholders?

Sarah Stack

Sarah Stack

LOSSES of up to 100pc could be imposed on some subordinated bondholders in Bank of Ireland.

The Department of Finance said the bailed-out lender still needs to raise €350m by the end of this year to meet the financial target of €4.2bn set by the Central Bank.

It revealed Finance Minister Michael Noonan is considering using powers available to him under the Credit Institutions (Stabilisation) Act to apply for a subordinated liabilities order (SLO).

The legislation, passed last year, gives the minister wide-ranging powers to deal with the banks.

Mr Noonan has invited submissions from interested parties by the end of the month before making a decision.

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