ECB ‘held all the cards’ on bondholder issue

THE ECB had “the means to prevail” on the bondholder issue because they were providing the funding to keep the Irish banks going, the secretary general of the European Commission has said.

The Government has been heavily criticised after reneging on election promises to make senior bondholders in the banks share some of the losses.

But Catherine Day, who is Irish, indicated yesterday that the ECB effectively had all the cards.