ECB ‘clearly stated’ objection to burning bondholders

The former head of the Department of Finance has said it was made clear to the Government the ECB would “not be happy” if senior bondholders were burnt.

John Moran told the banking inquiry the Fine Gael-Labour government wanted to share the burden of the banking crisis with senior bondholders, after taking power in 2011.

Asked about claims the European Central Bank threatened to withdraw funds from Ireland if it burnt some bondholders, Mr Moran said the bank expressed its opposition.