Irish Prime Minister Brian Cowen warned Wednesday of a “flight of capital” from the country if banks defaulted on senior bond debt, adding that Ireland cannot unilaterally make such a decision.
In an interview with state broadcaster RTE Radio, Cowen also formally apologized for the economic crisis.
He said that Ireland cannot “unilaterally” look at burden-sharing by senior bondholders, and that such a move would need agreement from other countries in the euro area. “If we did, there would be a flight of capital out of this country,” he said.
When asked to apologize for the state of the economy, he said: “I take responsibility for everything I’ve done. No-one is more sorry about this situation than I am…I apologize unconditionally about the situation this country finds itself in.”
Cowen said he had “an excellent relationship” with Finance Minister Brian Lenihan. Cowen also said he will lead Fianna Fail into the next election, despite the party’s popularity falling as low as 13% in the most recent opinion polls. More.