Troika warns of financial ‘bomb’ in Dublin

The troika warned that a financial “bomb” would go off in Dublin, if Anglo senior bondholders were not repaid, a Government minister has said.

Anglo, now known as IBRC, is due to repay €1.25 billion to bondholders on Wednesday and Transport Minister Leo Varadkar said householders would suffer if it didn’t.

Mr Varadkar said any decision to burn bondholders would impact on Ireland’s reputation, increase borrowing costs for banks and semi-state companies, and ultimately lead to higher mortgages and household bills.