Business Irish

Thursday 14 December 2017

France’s Francois Hollande backs retroactive deal on €64bn in Irish bank debt

French President Francois Hollande welcomes Taoiseach Enda Kenny to the Elysee Palace
French President Francois Hollande welcomes Taoiseach Enda Kenny to the Elysee Palace

David Young

FRANCE backs a retroactive recapitalisation of our banks, President Francois Hollande said after talks with Taoiseach Enda Kenny on Monday, adding that its banking sector should be treated as "a special case".

German Chancellor Angela Merkel has said euro zone rescue funds cannot recapitalise any bank until a euro zone banking supervisor is fully operational late next year.

However, she and Kenny issued a joint statement on Sunday affirming that Ireland's bank rescue was a "special case" and that euro zone leaders would examine ways of improving it.

It has cost us €64bn.

"The Irish specificity is that for several months there had already been a recapitalisation of banks via the budget which worsened Ireland's debt and forced it to impose a tough plan," Hollande said after talks with Mr Kenny.

"I said Ireland was a special case and should be treated as such," Mr Hollande told reporters after the meeting.

When asked if recapitalisation could be back-dated Mr Hollande said: "Yes, recapitalisation already took place through their own funds so the Euro Group will take that into account."

The Euro Group is the body regrouping the 17 nations of the euro single currency zone.

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