Ireland's bank burden 'to be cut in June'

24 December 2012

Ireland's prime minister Enda Kenny expects the country's debt burden to be reduced next year.

The debt burden currently carried by banks in Ireland is likely to be cut next year, it has been suggested.

As quoted by the Sunday Times, prime minister Enda Kenny has said he expects leaders in Europe to introduce the reduction by June, which is when Dublin's presidency of the European Union ends, Reuters reports.

Mr Kenny - who is also leader of the Fine Gael Party - stated: "Following the decision of the European Council, we expect agreement on the modalities of reducing the burden that the Irish taxpayer took on from the recapitalization of the going-concern banks."

While it may not be until 2014 that a real transaction can be made, market confidence could be strengthened through a clear signal being sent with regard to how this will be carried out, the politician observed.

He added such a move might also serve to reduce interest rates for Ireland as the presidency draws to a close.

By Asim Shah

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