Ireland hints at bank bond debt deal

Article reports that Ireland gave the first indication on the 6 October 2010 that it may seek a voluntary renegotiation of senior bond debt owed by its two state-owned banks in a bid to recoup part of the cost of its €50bn bank bail-out announced on the 30 September 2010.

Separately, Ireland’s debt rating was downgraded by Fitch on the 6 October 2010, with a further downgrade more than likely in the next two years.

The downgrade of Ireland's long term debt from AA- to A+ reflected 'the exceptional and greater-than-expected' cost of recapitalising the country’s banks.

ESO: Background information: Ireland unveils bank rescue package http://www.europeansources.info/record/ireland-unveils-bank-rescue-package-anglo-failure-would-bring-down-ireland/

Irish Times, 7.10.10: Regulator floats bank bondholder negotiation http://www.irishtimes.com/newspaper/finance/2010/1007/1224280568830.html

Ireland: Central Bank and Financial Services Authority of Ireland: Press Release, 6.10.10: Opening Statement by Matthew Elderfield, Head of Financial Regulation, Central Bank of Ireland to the Joint Committee on Economic Regulatory Affairs, 6 October 2010 http://www.financialregulator.ie/press-area/press-releases/Pages/OpeningStatementbyMatthewElderfield,HeadofFinancialRegulation,CentralBankofIrelandtotheJointCommitteeonEconomicRegulatoryAf.aspx

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