No deal on bank debt until Spain is resolved: Faber

There will have to be a deal on Spanish bank debt before a decision will be made on Irish bank debt, according to the chairman of the German Exchange, Joachim Faber.

But there could be challenges in securing a deal. “The plan is for Ireland to get its budget deficit down from 8.5% of GDP to 3% of GDP.

“If it can do this while still financing the costs of the debt, then the view in Europe could be that the debt is manageable,” said Dr Faber.