Tánaiste says Ireland will not seek Greek-style debt write-off

TÁNAISTE EAMON Gilmore has ruled out Ireland seeking a similar deal to Greece in dealing with its debt problems.

“The Government will take the approach that is in the best interests of the people, but when one considers the situation in Greece, one must also bear in mind the measures that country is required to implement,” he said. “They are not measures we would want to contemplate here.”

He was replying to Fianna Fáil deputy leader Éamon Ó Cuív who asked if the Government would seek an equivalent write-off for bank debts if such a concession was made to Greece. “I agree that Ireland is not Greece, but it is important to ensure we are not penalised for taking the right steps,” Mr Ó Cuív said.

“The Labour Party has campaigned for a mandate to ensure bondholders would share the burden of the losses incurred in the banks.”

He said that the Minister for Social Protection, Joan Burton, had said in opposition that burden-sharing for bank losses had become central to debates within the euro zone and had the clear support of the IMF.

Ms Burton had also said that a new government would have to engage fully after the election in pursuing that option, he said.

Mr Gilmore said the Government’s approach was aimed at minimising the cost to the taxpayer of bank restructuring and recapitalisation.

“We have already included a significant degree of burden-sharing with bondholders in respect of what has been done in the case of the Irish banks,” he added.

The total recapitalisation cost was originally estimated at €24 billion but it was now of the order of €17 billion, largely as a result of burden-sharing.

“These decisions have also resulted in increased private sector interest in Irish banks,” Mr Gilmore said.

“All of this is to our advantage.”

The Tánaiste said that considerable work was being done in advance of the meeting of European heads of state and government next Sunday.

A resolution of the difficulties facing the euro, including the issues that had arisen affecting Greece, had to be secured.