DUBLIN Jan 16 Ireland will need a "novel"
solution that does not take policymakers too far out of their
comfort zone if it is to reach a deal with the European Central
Bank on restructuring part of its bank debt, its central bank
"Taking into account both the statutory position and wider
policy stance of the ECB, an initiative of this type will be
novel and as such challenging," Patrick Honohan told a
parliamentary committee, referring to negotiations on the
so-called "promissory notes" pumped into two failed Irish banks.
"We have been working carefully to build understanding and
confidence around a set of proposed transactions designed to
deliver for Ireland, while not taking other decision makers too
far out of their comfort zone.
"In fact, what we have designed is, I believe, largely in
the interests of the eurosystem as a whole."