Centra Bank governor denies row with Kenny
Prof Honohan said that while the European Central Bank would not revisit the deal, it would continue to monitor the situation.
Central Bank Governor Prof Patrick Honohan has denied a report that he was rebuked by Taoiseach Enda Kenny and Ministers by phone for failing to seal the promissory note deal on Wednesday.
The Sunday Independent has reported today that Mr Kenny and senior Ministers were reportedly furious with his failure to close the deal that night.
Prof Honohan said today he had read the report “and it did not really gel with any conversations I had on Wednesday’’. Pressed further on the matter, he added: “I promise that I do not tell people what I have in private conversation, but that is just absolutely not…We had discussions about how to deliver this as soon as possible.’’
He said he was as concerned, more concerned he would say, than anybody else about the matter. There was nothing “fraught’’ on the part of those involved on the Irish side of the discussions.
Interviewed on RTE’s The Week In Politics, Prof Honohan said that while the European Central Bank would not revisit the deal, it would continue to monitor the situation.
“As you know, the Central Bank has undertaken to sell these bonds as soon as possible, subject to financial stability conditions,’’ he added. “And that has to be monitored continuously over the next 25, 30 years.’’
Asked if he now regarded the Irish national debt as sustainable, Prof Honohan said the debt and its path were a lot more sustainable than before the deal. “There are always risks,’’ he added. “We have published many papers in the Central Bank showing the scale of the risks.’’