Taoiseach: 'No deal on bank debt by end of year'

Written By Unknown on Kamis, 22 November 2012 | 22.40

Taoiseach Enda Kenny said there would be no deal on Ireland's bank debt before the end of the year.

Speaking in Brussels Mr Kenny said: "The situation is that there will not be a decision on this before the next [European] Council meeting and before the end of the year."

He said he hoped that during negotiations on the creation of an EU banking union that Ireland's bank debt would be dealt with "in parallel" .

Mr Kenny was speaking following a speech to a German political foundation in Brussels.

He said that following his discussions with the German Chancellor Angela Merkel and the French President Francois Hollande it had been concluded that Ireland was "a special case" and that that would be taken into account during 2013 when finance ministers discuss the creation of a new EU banking union and a banking supervision mechanism.

"We hope that during the course of 2013 our Minister for Finance will progress in that understanding and that decision, and [that] it will be recognised in those discussions," he said.

Mr Kenny said that the bank debt issue comprised the recapitalisation of Irish banks which had already taken place, and the Anglo promissory notes.

He said he hoped that both elements required that the level of debt, which he described as a crushing burden, had to be "re-engineered".

The Taoiseach added that Ireland had received "a great deal of support" from the IMF, the ECB, the European Commission and political leaders.

"I hope that being serious ourselves, and proving that we're serious as we manage to move towards an exit of this bailout, that assistance will give us extra help."

Mr Kenny was speaking at the Konrad Adenauer foundation, a German think tank, ahead of the summit of EU leaders in Brussels.


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