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.