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New Irish deal hope as Greeks eye 100bn debt cut
Date 27/10/2011 14:38  Author webmaster  Hits 944  Language Global
• 27 OCT 2011

By Donal O'Donovan in Brussels, Tom Molloy and Brendan Keenan | Irish Independent

GREECE will get €100bn shaved off its debts under new proposals put forward at a critical EU summit in Brussels last night.

But banks were locked in disagreements with EU chiefs over the scale of the losses and how they would be covered.

Banks that lent money to Greece will have to pick up the tab, but taxpayers across Europe may have to cover the losses, as happened in Ireland.

Last night's proposal will leave the door open for demands that Ireland get a cut in its €160bn debt mountain.

Taoiseach Enda Kenny said Ireland would use the new arrangements to try to reduce the costs of the national debt.

"We will continue to seek improvements in relation to the legacy costs that have been incurred by the State in rescuing the banking system."

He added that a plan to expand the eurozone's main rescue fund to more than €1 trillion "may also offer further opportunities from which we can benefit".

But Mr Kenny firmly ruled out Ireland following in the footsteps of Greece and seeking a cut in its national debt.

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See also:

Kenny admits we may have to hold another EU referendum (Irish Independent)