Taoiseach Enda Kenny has said he sees no circumstance in which junior bondholders in the former Anglo Irish Bank will be paid after IRBC is liquidated.

The Finance Minister, Michael Noonan, indicated last week that they could be due a payout the liquidation process of the IBRC but the Taoiseach today moved to allay fears that this was the case.

That was dismissed yesterday by the Tánaiste yesterday and now Kenny has affirmed that taxpayers will not lose out to bondholders.

Comparing his government to his Fianna Fáil predecessors, he said the Fine Gael led government “had put taxpayers first in line to benefit” in matters relating to the bank guarantee, whereas Fianna Fáil had “put the taxpayers first in line to suffer.”

He went on to offer a firm rejection of the idea that junior bondholders would be paid after liquidation of IBRC.

“I do not see any circumstances, any circumstance, in which junior bondholders will be paid out of the liquidation of IBRC,” he said.