This happened when I was trying to use repository from Eclipse using Subclipse plugin. The first time I was setting up repository in Eclipse I specified password based authentication, password was memorized and never asked again (because I clicked on checkbox to memorize it).
Because Subclipse and JavaHL got compatibility issues, and the error was mentioning JavaHL I was thinking problem is still with Subclipse and JavaHL versions incompatibility. Tried to re-install different Subclipse versions. Didn’t help.
So, here goes solution:
1. Clean passwords saved in Eclipse. Remove .keyring file from (eclipse_installed_dir/configuration/org.eclipse.core.runtime/)
2. Change authentication type to File based and specify path to your ~/.ssh/id_rsa (note, not id_rsa.pub)
3. Do any SVN action (update / commit / checkout … )