Dublin: Eurozone finance ministers will discuss reducing the interest rate charged to the bloc's portion of an €85 billion (Dh411 billion) EU/IMF bailout which Ireland sought late last year, the Irish Times reported yesterday.
The paper said the discussions could take place as early as next week when the ministers meet in Brussels on Monday. Irish opposition politicians have repeatedly criticised as expensive the 5.8 per cent interest rate on the package.
"European officials have expressed caution about the prospect of an immediate move to cut the interest rate on Irish loans, saying any reduction in the rate by the European Financial Stability Facility (EFSF) could have negative implications for its triple A credit rating," the paper said.
Discussion stage
A Eurozone source said lowering the interest rate was "at the discussion stage, not the decision stage", adding that the ministers would debate issue as part of a wider discussion on the Irish bailout and a review of the Greek rescue plan.
The paper cited a spokesman for EU Economic and Monetary Affairs Commissioner Olli Rehn as saying he was "not aware of such a discussion being scheduled and taking place next week", but added the commission did not set the agenda of the euro group or the ECOFIN council of EU finance ministers.
Irish Finance Minister Brian Lenihan said last week the interest rate for funding from the EU and IMF was determined by "a common approach for any borrower".
"Accordingly, any changes to these rates cannot be negotiated for Ireland in association and must be seen in the wider context," Lenihan said.
