May 16, 2012, 6:29 a.m. ET
DUBLIN (Dow Jones)--The problems of Spain's banks will be resolved, but the recapitalization bill could be "expensive", Irish Finance Minister Michael Noonan said Wednesday.
"There is an awful lot of concern about the Spanish banking system but the new Spanish government is dealing with it quickly," he said. "My sense is there will be recapitalization requirements made which will be an expensive enough project, but I think it's relatively do-able."
Talking at a Bloomberg investment conference, the finance minister said parallels had been drawn between Irish and Spanish banks because the lenders in both countries had loaned large amounts to construction.
Turning to Greece, he said there is no pressure from the European Union on Greece to leave the euro. But it was now in Greece's "own hands" to decide its future, he said, characterizing the country's current problems a crisis for its democracy, not one of its economic system.
"It's not guaranteed that Greece is going to leave the euro," he said.
Ireland is immune from Greek market turmoil because the economic ties between the countries were weak, Noonan added.
-By Eamon Quinn, Dow Jones Newswires, +35 31 676 2189; eamon.quinn@dowjones.com
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