The Dáil has heard calls for Michael Noonan to resign over claims he misled the house about the ECB's stance on burning bondholders.

It is after the Banking Inquiry found that the ECB had explicitly threatened to cut off funding for Irish banks if bondholders were burned.

Social Democrat TD Stephen Donnelly has said it is a contradiction of what Michael Noonan told the Dáil four years ago: “I asked the Minister in this house, if any threat had been made, to withdraw emergency liquidity assistance if Ireland looked to burn the bondholders.

“Minister Noonan stated neither of these threats were ever made.

“I believe and the Social Democrats believe that Mr Noonan should resign.”