Irish bank bondholders face haircuts of up to 90%

Three of Ireland's lenders could impose losses of up to 90% on bondholders under plans to see them help pay for the recapitilisation of the country's banking system.

According to the Financial Times, the Bank of Ireland said it will announce a cash offer of €2.6bn of its subordinated debt, with discounts ranging between 80% and 90%. Peers Irish Life & Parliament and EBS also have similar plans for around €1bn of debt. Bondholders have come under fire for not shouldering their share of the pain in the bailout of the country's banking system, and Parliament is willing to act to make sure the bailout cost is spread more equally. Michael Noonan, the Irish finance minister, said the burden sharing now being proposed is the “the minimum acceptable to...