Kenny warns ‘tough’ bank bailout deal talks may drag into next year

Tough negotiations aimed at cutting a deal on the rest of Ireland’s bank bailout debt are likely to drag into next year, the Taoiseach has admitted.

Fresh from an agreement over the Anglo promissory notes, Enda Kenny has warned that the bid to recapitalise the country’s €32bn bank debt from EU rescue funds will be a slow process.

Getting European leaders to agree that “legacy debt” should be included in the proposed €500bn European Stability Mechanism is the next major focus for the Government’s attention.

Mr Kenny said he never expected a deal would be cut by this June and said the talks would be tough.

“There won’t be a deal by June. The mechanics of the structure will be available by June. The understanding was that you were never going to arrive at a decision until you had a mechanism in place.

“Mr Noonan is conducting the talks, and they have already commissioned a working paper in regard to the principle being accepted, not finalised, of a considerable extension of the maturities to be given to Portugal and Ireland.

“Hopefully we will put together the structure by June, but in reality it will not become effective until very late this year or 2014, and I do not underestimate the scale of the challenge of the negotiations.”

He was speaking as he welcomed Ebay’s announcement that it was to 450 jobs in Dundalk.

© Irish Examiner Ltd. All rights reserved

Related Articles

More in this Section

Fine Gael's Brendan Griffin urges expulsion of Russian ambassador to Ireland

Garda industrial action: Overtime bill hits €7.2m in just 10 Garda divisions

Farm vigilance urged after child’s death

4,000 to be deported or refused entry to Ireland in 2016; highest number in 6 years


Breaking Stories

A new baby monkey born at Fota Wildlife is looking for a name

ASTI still refuse to grade continuous assessment portion of JC english, despite risk to students

New mediation service for workplace disputes cannot be availed of due to lack of resources

Dublin siblings win €2.3m in family Lotto syndicate

Lifestyle

Teens triumph over troubles with Happiness Skills book

Ask Audrey has been sorting out Cork people for years

Mick Flannery is looking at life from both sides with an excellent new album

Do advances in technology mean we're closer to finding alien life?

More From The Irish Examiner