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 in the Dáil last week about repaying junior bondholders.
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."
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 trust the management of their economy, their family's well-being to parties who have actually have a proven record."
There is a ranking order of Anglo creditors and unsecured bondholders are at the bottom of that pile.
Meanwhile, a spokesman for the Department of Finance has said that: "The junior bondholders are the bottom of the pile of creditors."
He said that they would be the last to be paid and it is very unlikely that they would be paid.
"The liquidation of IBRC would have to be extremely successful in order for enough money to be left to pay them." he added.
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.