Tánaiste and Labour leader Joan Burton has ruled out the possibility of junior bondholders in Anglo Irish Bank getting a payout from the liquidation of the Irish Bank Resolution Corporation.
IBRC was the entity formed from Anglo Irish Bank and Irish Nationwide in 2011.
Speaking on RTÉ’s The Week in Politics, Ms Burton said that if a request to repay unsecured bondholders is made she believes it will be refused.
The Tánaiste was asked about comments made by Minister for Finance Michael Noonan about repaying junior bondholders in the Dáil last week.
Ms Burton said that she does not see any way in which it is going to happen as the people of Ireland have to be repaid.
She said: “It is completely unlikely to happen because in the queue before the junior bondholders are the Irish people.”
Burton rules out repaying unsecured bondholders before Irish people
Ms Burton also said the Government will complete its full term in office.
She accepted that there was significant instability among voters, with many of them switching allegiance, but she argued that this was not unique to Ireland.
Minister Burton said voters faced two clear choices at the next General Election.
She said: “People will have to decide do they want to elect parties who are now, six years after the guarantee, promising to still default in relation to our debt obligations or do they to trust the management of their economy, their families wellbeing to parties who have actually have a proven record.”
Elsewhere, Minister for Jobs Richard Bruton has rejected reports that there were any difficulties within Government about the Universal Social Charge.
Mr Bruton said the Government had cut the USC in the Budget and people would see the benefit of that on 1 January.
The minister said the Government had already put in place a strategy to reduce the tax burden.
His comments follow a report in the Sunday Independent that the Coalition was “massively split” over whether it should cut USC or the top rate of tax in the next Budget.