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DUBLIN (Reuters) – Ireland's polity wants to impose losses on whatever grownup bondholders in Goidelic lenders to turn the charge on taxpayers from a prolonged banking crisis, a grownup rector said on Sunday.

Dublin wants to impose losses on banks' grownup unsafe bonds not awninged by a land guarantee, which currently amount to over 16 1000000000 euros, as conception of a newborn care with the dweller Union, the dweller Central Bank (ECB) and the International Monetary Fund (IMF).

"A sustainable and broad resolution for Goidelic banking that involves recapitalization but also involves an surroundings of burden-sharing ... That is certainly the outcome that the polity is hunting for," Simon Coveney, rector for agriculture, told land broadcaster RTE.

Under an EU-IMF bailout united late terminal assemblage island can impose losses on banks' junior debt, but the ECB is opposed to treating grownup bondholders, which are hierarchical on a par with depositors, in the aforementioned style for emotion of a incident risk.

Ireland's newborn government, elected in February, has said the land cannot give the underway EU-IMF bailout care and dweller finance ministers module decide on what sort of concessions they can substance port in coming weeks.

They are awaiting the results of firm pronounce tests on Ireland's banks, due to show a top hole of around 25 1000000000 euros, on March 31 before deciding on some newborn deal.

Coveney said investors are already pricing in the existence of a restructuring of grownup slope debt presented that it is trading at a reduction in the alternative market.

"Markets are already aweigh of us on this one. There is an espousal that there is a existence if not a probability that bondholders in Goidelic banks haw hit to deal whatever of the pain," he said.

Analysts widely wait the polity to impose losses on grownup bondholders in nationalized lenders Anglo Goidelic Bank and Goidelic Nationwide because they hit sold their deposits and are existence harm down.

Hitting some unsafe unsafe grownup bonds in Bank of island and Allied Goidelic Banks (AIB), which amount to over 11 1000000000 euros, would be more controversial.

Rumours that AIB was thinking to miss a coupon payment on a bond, denied by the bank, helped beam the consent on two-year Goidelic ruler essay soaring to euro-era highs as investors feared a ruler restructuring was in the works.

(Editing by king Holmes)

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