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ECB fund unlikely to be tapped -- Honohan

THE ECB liquidity facility to assist Ireland's struggling banks is not expected to be tapped "for the moment", Central Bank governor Patrick Honohan has said.

Against market expectations, the ECB did not reveal a new facility to ensure that struggling banks in Ireland, and in any future other eurozone countries, had more guaranteed access to medium-term funding.

Mr Honohan, who is also an ECB governing council member, said such a move was unlikely in the near term, although he did not rule it out completely. And the Governor denied that the increase in ECB interest rates, which rose by 25 basis points to 1.25pc last week, would pose a significant problem for Irish banks.

"It [the rate increase] is very much a secondary issue in terms of the recovery of the Irish banks," he said.