(Reuters) - Ireland's central bank governor is confident that the country will get a deal in the euro zone on easing the terms of its bank debt, it is just a question of what it looks like, he said on Sunday.
Euro zone leaders agreed at their summit in June to look at improving Ireland's bank rescue package and EU Economic and Monetary Affairs Commissioner Olli Rehn set a deadline of October to reach a decision on the matter.
Irish central bank chief Patrick Honohan said on Friday that Ireland may miss next month's deadline for a decision on easing the terms of its costly bank bailout as there were "sequencing issues" to parts of the deal.
He repeated his thoughts on the complexity of meeting the deadline on Sunday, but added he was confident a deal would be obtained.
"In my view, it's not a question of what or whether something will be done, it's a question of what will be done," Honohan told state broadcaster RTE.
"Something will be done. We would like, on the Irish side, a lot to be done and very effectively," he said.
"There is a range of possible outcomes. I am hopeful that we will reach the top 10 of those possibilities," he added.
Honohan added that discussions are going on actively, referring to the part of the deal that would benefit from an agreement to allow European rescue funds to recapitalize banks, something Dublin wants to benefit from retrospectively after pouring billions into its lenders.
The mechanism for delivering on this agreement depends on how long it takes the euro zone to set up a banking supervisory body, with Germany and the European Commission seemingly at odds over how a new banking union should operate.
reuters.com
Euro zone leaders agreed at their summit in June to look at improving Ireland's bank rescue package and EU Economic and Monetary Affairs Commissioner Olli Rehn set a deadline of October to reach a decision on the matter.
Irish central bank chief Patrick Honohan said on Friday that Ireland may miss next month's deadline for a decision on easing the terms of its costly bank bailout as there were "sequencing issues" to parts of the deal.
He repeated his thoughts on the complexity of meeting the deadline on Sunday, but added he was confident a deal would be obtained.
"In my view, it's not a question of what or whether something will be done, it's a question of what will be done," Honohan told state broadcaster RTE.
"Something will be done. We would like, on the Irish side, a lot to be done and very effectively," he said.
"There is a range of possible outcomes. I am hopeful that we will reach the top 10 of those possibilities," he added.
Honohan added that discussions are going on actively, referring to the part of the deal that would benefit from an agreement to allow European rescue funds to recapitalize banks, something Dublin wants to benefit from retrospectively after pouring billions into its lenders.
The mechanism for delivering on this agreement depends on how long it takes the euro zone to set up a banking supervisory body, with Germany and the European Commission seemingly at odds over how a new banking union should operate.
reuters.com
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