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Ireland not impacted by Cyprus' bailout deal - Kenny

Banks in Cyprus remain closed as discussions continue on the terms of the proposed bailout deal.

A protestor with his child hold a banner outside of parliament during a crucial meeting in capital Nicosia, Cyprus, yesterday.
A protestor with his child hold a banner outside of parliament during a crucial meeting in capital Nicosia, Cyprus, yesterday.
Image: Petros Karadjias/AP/Press Association Images

TAOISEACH ENDA KENNY has sought to reassure Irish people that the Cyprus bailout will have no impact on Ireland.

Speaking in Washington, the Irish Examiner is reporting that Taoiseach Enda Kenny described the Cypriot situation as “a different and unique case” and that it would have no impact on Ireland.

Fianna Fáil’s finance spokesperson Michael McGrath said that the bailout proposals set “a dangerous precedent across the euro zone”, adding that it undermined the confidence of investors.

Discussions are continuing in Cyprus on whether the proposed one-off levy on savings within banks should be amended. MPs are due to vote on the bailout deal at 4pm Irish time.

The bailout proposes that Eurozone countries will offer €10 billion in emergency funding, with Cyprus due to come up with another €7 billion itself.

It is the way in which this €7 billion is to be taken from savings, however, that has led to fears throughout other bailed out countries as to the safety of banking deposits.

McGrath has questioned what will now happen should Ireland’s banks need more money in the future:

Irish depositors will legitimately ask how safe their money is if it transpires that Irish banks need more money to absorb losses on mortgages and business loans.

Read: Cyprus tries to renegotiate deposit tax ahead of vote on bailout deal >

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Paul Hyland

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