Taoiseach: Irish savings will not be hit with Cyprus-style tax

Taoiseach Enda Kenny has today insisted that large depositors in Irish banks are not at risk of taxes similar to those facing Cyprus.

He was responding to the so-called 'bail in' which is expected to impose extensive taxes on deposits in Cypriot banks.

Dutch Finance Minister Jeroen Dijsselbloem rowed back from previous suggestions that the Cypriot plan could form a template for Europe.

Deputy Kenny said that large depositors in Irish banks are not in any danger.

"No, that's an argument we have to have," he said.

"If you look at the fall in interest rates which has occurred in an Irish context in the last 15 months, we're now being treated as a very stable, very core country, in terms of our return to the bond markets, and I don't see that matter arising in terms of large depositors in our banks here."