Honohan defends tenure as Central Bank boss

The Governor of the Central Bank, Patrick Honohan, has been defending his record in office.

The Governor of the Central Bank, Patrick Honohan, has been defending his record in office.

Mr Honohan has been speaking about a scathing article in yesterday's Irish Times in which UCD economist Morgan Kelly criticised him for underestimating the losses in Irish banks and promising to pay back bondholders in full.

But in a radio interview this afternoon, the Governor said he didn't know the full extent of the losses in Irish banks at the time, and even if he did, the decision had been made to honour the bank guarantee.

In the article, Mr Kelly also warned that Ireland's debt will hit €250bn by 2014, a figure that Mr Honohan agrees would be unsustainable, if it were to happen.

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