Ireland to Force Loss-Sharing on Junior Debt Holders
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Ireland’s government will be able to force junior bank bondholders to share losses to protect financial stability under legislation published today.
The government may take action if “necessary for preserving or restoring the financial position of the relevant institution,” according to the Credit Institutions (Stabilization) Bill, published on the Irish Parliament’s website. Lawmakers will vote on the plan, which also gives ministers power to veto bonuses at bailed-out lenders, tomorrow.