Wealthy Irish financier Dermot Desmond said yesterday that Ireland's debt problems would be resolved by either a default or "hopefully through controlled inflation".

Speaking at the National College of Ireland in Dublin's IFSC, where an education partnership with the Institute of Canadian Bankers was unveiled, Mr Desmond added that major constitutional reform was required to shake up politics.

“If I had one wish from the genie to ensure the future of Ireland’s economic and social health it would be ask for constitutional reform, particularly in the way we elect our politicians,” he said. “The manner in which we elect our politicians is not fit for purpose.”

Mr Desmond said Tom Arnold, who is chairing the Constitutional Convention, would “hopefully put forward radical reforms” and that “politicians would put country first rather than self-interest”.

Mr Desmond said we need the best-educated people available for Government, particularly in the health, education and finance portfolios.

Mr Desmond also said the future of corporate personal lending would involve the establishment of non-bank lending platforms across Europe. “These platforms will have greater levels of capital financed by pension funds, the insurance industry and private investors.”