Ireland gets more time for bailout repayment and interest rate cut

Irish Prime Minister Enda Kenny and Deputy Prime Minister Eamon Gilmore speak to the press

The interest rate on Ireland’s bailout package is to be cut by two percent and the loan time doubled, as a result of a new Euro-wide rescue mechanism.

The new deal is understood to be worth between €600 and €800 million a year to Ireland, the Irish Times reports.

According to a draft statement drawn up by euro zone leaders today, Ireland’s bailout interest rate will drop to around 3.5 percent and Ireland will now have 15 years to pay back its debts.

Ireland currently pays an average of 5.8 percent on its multi-million bailout package which was originally supposed to be repaid over 7.5 years.

Meeting in Brussels today, the Euro zone leaders agreed the deal, as well as a lower interest rate for the Greek and Portugal bailout package.
Read More:
Irish bailout interest rate cut now likely after French talks

IMF leaders back in Ireland to oversee bailout progress

We’re broke and we don’t need blarney
The deal has been offered on the condition that the government “participates constructively” in future talks on a common EU-wide corporate tax .

Today’s meeting in Brussels was attended by 17 eurozone leaders, IMF head Christine Lagarde, ECB chief Jean-Claude Trichet, and a representative from the Institute of International Finance.