Greek debt writedown will be ‘very difficult’, says Kenny

Taoiseach Enda Kenny has said it will be "very difficult" for Greece to achieve a writedown of debt agreed under its €240billion international bailout.

Asked whether he agreed Greece should have some of its debt written down, Mr Kenny said other countries would point to the fact they have had their own restrictions imposed, have "beaten all of those" and are now "in a very different space".

"Ireland chose the path of constructive engagement and constructive negotiation and in a very short time those sacrifices made by the people are now paying dividends," he told Newstalk.

Following the election of Syriza and the subsequent formation of a coalition government this week following years of austerity, Mr Kenny said Greece faces "an enormous challenge" ahead.

“Their debt is horrendous, their unemployment rate is 25 per cent, 50 per cent among young people and, obviously, I wish the new prime minister and his cabinet the very best in the challenge they face.”

On the €350m loaned to Greece by Ireland, Mr Kenny said: “The theory is that we will get that back. We like to think that we will get it back. We contributed the same as any other country to a country in some difficulties.”

Commenting on an intervention this week by the IMF in which it said the Government should examine universal welfare entitlements such as the child benefit payment, Mr Kenny said that decision was up to the Government and not the IMF.

“The IMF are entitled to make their comments, the Government makes the decisions here. We will continue to give back flexibility where we can to the people who are hard-pressed in the country.”