Government tries to clarify Kenny debt ‘writedown’ comments

The Government has clarified that a writedown on the country’s sovereign debt has never been requested but said efforts have been made to reduce the burden of bank debt.

The opposition had called for a clarification on whether or not a request had been made to write down bank-related debt following what appeared to be conflicting statements between the Taoiseach and the minister for European affairs.

Lucinda Creighton was asked on TV3 to respond to Enda Kenny’s words in the Dáil last week that the Government had “never looked for a debt writedown”. Mr Kenny said: “We will pay our way.” He continued to describe how the Government had sought more flexibility from the country’s bailout loan. In response to this quote which was played on Tonight with Vincent Browne on Wednesday night, Ms Creighton said: “The Government did seek a debt write down. Michael Noonan met with the former president of the ECB and the IMF and there were certainly discussions about debt write down.”