February 27, 2011

Irish new government pressing for bondholders haircut

Enda KennyImage via Wikipedia
Interesting to see in the following months if the new Irish government will be able to fight against the banking system or will simply and silently accept the institutionalized theft of their future.

From the Guardian:

Bondholders face pressure from new Irish government to share cost of bailout by taking 'haircut' on sovereign debt
Nervous bondholders are braced for a showdown with the new Irish government as fears grow that politicians will demand massive cuts in repayments on sovereign debt.
Investors face losing billions of pounds if proposals to renege on loan repayments on Ireland's bank debts and its sovereign bonds are put into action.
Enda Kenny, leader of Ireland's largest opposition party, Fine Gael, which was expected to be the biggest party after Friday's election, told voters during the campaign that senior bank bondholders should share the cost of bailing out the Irish financial system.
Interviewed by the state broadcaster RTÉ, he said: "We have made the point about unsecured bondholders that it would be absurd that Irish taxpayers should be asked to pay 100% of this without these people having to take their share of the burden."
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