Honohan: Bailout a costly way of getting funding

The Governor of the Central Bank has admitted that getting a bailout from the IMF and Europe is a costly way of dealing with our banking problems.

Patrick Honohan told a seminar in Dublin this morning that he hoped that market confidence will recover and that we will be able to pay back the money quickly.

His comments come as Government officials continue to hammer out a bailout deal with the IMF and European officials, who have been in Dublin since last week.

On the issue of NAMA, Patrick Honohan acknowledged the process has not had the result that had been hoped for.

He also added that he is an advocate of small countries having banks owned by foreign groups.

He told those gathered at the seminar: "It's not certain (all the EU/IMF monies) will be drawn down…To the extent they're drawn down, to a large extent they will be substituting for market funding."