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Irish PM: Bailout Conditions 'Unfair'

Thursday, 24 Jan 2013 | 8:14 AM ET

The borrowing terms and conditions that were imposed on Ireland after it applied for financial aid were unfair according to Irish Prime Minister Enda Kenny, as the country didn't receive the same deal as Greece.

Irish Prime Minister Enda Kenny.
Georges Gobet | AFP | Getty Images
Irish Prime Minister Enda Kenny.

Ireland's bailout program, approved by the troika (the European Union, the International Monetary Fund and the European Central Bank) in December 2010, provided up to 67 billion euros ($89 billion) in financial support till the end of 2013.

(Read More: Irish Economy Risks Downward Spiral: Expert)

Ireland became only the second country after Greece to ask for such financial help after the financial crash of 2008. But the country didn't get the write-down on its private sector debts that was granted to Greece.

In November, Greece was also granted a two-year bailout extension and it got a cut in the interest rate on its loans.

"Well the mechanism and the tools that are available now, weren't available when Ireland went over the edge," Kenny told CNBC Thursday during the World Economic Forum in Davos, Switzerland.

"And in that sense we feel that the impositions on Ireland have been unfair. And the mechanism that are available now should be applied in Ireland's particular case."

(Read More: Ireland Poised to Be Europe's 'Winner': Deputy Prime Minister)

This week Ireland and Portugal jointly asked for an extension on their bailout loans. Ireland is planning to exit its bailout program at the end of this year and to transition back to full market access.

"Ireland have sought an extension of the maturity as it's been allowed to Greece, and that's gone into a working group, we should report by March," Kenny said.

Ireland's PM: Bailout Conditions 'Unfair'
Enda Kenny, Ireland's Prime Minister, tells CNBC that Ireland did not get the same deal as Greece when it applied for a bailout and the mechanisms that are now available should be applied to Ireland.

EU economic and monetary affairs commissioner Olli Rehn has backed the idea of a bailout extension and was quoted by newswires as saying the European Central Bank's bond buying program, called the OMT, could be an option for Ireland as it exits its bailout program.

(Read More: Rehn Backs Loan Extension for Ireland, Portugal)

Kenny didn't rule out the possibility of accessing the OMT when asked by CNBC in Davos.

"Clearly as we come towards the end of the program we need to make arrangements to ensure that when a country does exit the program, that there are opportunities there just in case there are any unforeseen circumstances," he said.

By CNBC.com's Matt Clinch