Laura Noonan: Here's what is at stake if we don't repay those Anglo bondholders
Yesterday, the Government announced that it would pay back more than €700m to Anglo Irish Bank bondholders, against the advice of some experts. There are a number of potential consequences of not paying the bondholders:
•Anglo's other bonds would immediately fall due and have to be repaid.
If a bank fails to honour one of its bonds, the rest of its bonds become payable immediately. In Anglo's case, there will be about €12.5bn on bonds outstanding once today's $1bn payment goes through. The last of those bonds don't fall due until 2049, but Anglo could face demands for all of them today if it didn't make the $1bn payment.