The €715m payment to bondholders will hurt the Government

JUST days before the general election in February, the late Brian Lenihan said Fine Gael and Labour would be forced to “eat their words” after they promised to force losses on senior bondholders.

Today he is proven right as the Government pay over €715 million to nameless bondholders who lent to Anglo — in what amounts to a spectacular reneging on pre-election promises.

In a humiliating illustration of the country’s loss of economic sovereignty, the European Central Bank (ECB), which was in discussions with the Government on the issue until mid-September, has not approved any losses on bondholders.