Honohan: Troika deal was disappointing, but best available

The outgoing governor of the Central Bank said he was initially concerned the Troika bailout deal was not a good one.

Patrick Honohan has told the banking inquiry it was clear to him by November 4, 2010 that a programme application could no longer be deferred, though the then Finance Minister Brian Lenihan did not begin negotiations for another week.

Mr Honohan said he was not convinced about the deal done, but no better offer was available.

He said: "All in all, the Central Bank found the financial terms of the programme disappointing and unsatisfactory, especially in regard to the high interest rates and the lack of some kind of insurance mechanism against the risk in the banks.

"Nevertheless it was crystal clear to me that no better terms could quickly be achieved. Therefore having set out these concerns, I advised the Government in writing that it should proceed on the basis of the programme."