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Honohan plays down debt blow

CENTRAL Bank governor Patrick Honohan, right, has said that protracted negotiations to secure a deal on Irish bank debt will often seem "like two steps forward and one step back".

Mr Honohan's comments come after a communique issued by the ministers of finance from Holland, Germany and Finland earlier this week appeared to rule out a restructuring of Irish bank debt.

Speaking at a Corporate Restructuring Summit, in Dublin, Mr Honohan said that it was a "very complex political environment with lots of different problems facing different countries".

"So it is probably not surprising that there are two steps forward and one step backwards."