Troika’s bondholder burning warning

The troika shot down any prospect of Ireland burning the bondholders in late-2010 and warned such a move would cancel any possibility of a future bailout, a senior Government adviser during the crisis has confirmed.

Alan Ahearne, who was a senior advisor for the late finance minister Brian Lenihan between 2009 and 2011, outlined the situation at a bank inquiry meeting in which he also claimed the €35bn cost of the Anglo Irish and Irish Nationwide crises was low.

Speaking before ex-IMF officials Ajai Chopra, Marco Buti and current Finance Minister Michael Noonan attend the final day of public hearings of the cross-party body today, Mr Ahearne said as the original bank guarantee ended in September 2010, Mr Lenihan was “open” to burning junior bondholders.