Honohan: bailout funds unable to recapitalise a 'missed opportunity'08/05/2012 - 21:24:57
The central bank governor has described not allowing temporary or permanent bailout funds to directly recapitalise banks, as a "missed opportunity".
Speaking in London this evening, Patrick Honohan, said that injections from the European funding mechanisms to governments inflated their debt, which in turn led to concerns among rating agencies.
Mr. Honohan said the €17-billion injected into Ireland last year added some 13% of GNP to Ireland's debt.
He also highlighted the need for a European-level resolution agency to cover bondholders' claims in bank resolutions among members states.
more stories like this:
- once per day, no spam.