In a speech to the Institute of International and European Affairs, Jörg Asmussen , a member of the ECB’s executive board had this to say (from the Irish Times):
Referring to debts associated with the banking crisis but taken on by the State, he warned that “any desire to offload this debt could have dire consequences”.
He added that seeking to reduce the debt would signal that the debt level was not sustainable, thereby undermining confidence in the State’s capacity to repay it.
He said the ECB was “ready to work with the Irish authorities” in proposals to restructure the promissory notes used to honour the commitment of defunct banks.
He noted, however, that the full cost of the promissory notes had been factored into the bailout programme.
“Any deviation from that programme should be considered very carefully indeed,” he warned.
Mr Asmussen ruled out any medium-term commitment to funding the Irish banking system, a long-held Government objective.
Read the full Irish Times story here
No doubt the government will soon announce more spin and claim that we are proceeding well.