Business Irish

Saturday 19 October 2019

Expect a drop in Ireland's bailout interest rate - Rehn reporters

EU Commissioner Olli Rehn said today that Ireland can expect a drop in the EU/IMF bailout interest rate next week.

Speaking at a press conference about the Portugese interest rate this afternoon, Mr Rehn said he expects EU Finance Ministers to come to a conclusion shortly.

The interest rate should be related to debt sustainability rather than moral hazard, Mr Rehn said, adding that the interest rate on Portugal's bailout is calculated according to a formula agreed some time ago.

"This means that we will follow the IMF pricing policy and we will have a small premium, and this will lead to the interest rate to be somewhere in the scale of over 5.5pc, but clearly below 6pc," he said.

There was not a crisis of the Euro, but a sovereign debt problem in some Euro zone countries, Mr Rehn told reporters.

Meanwhile, German chancellor Angela Merkel refused to commit to a further bailout for Greece saying that an assessment of the government's progress on meeting its commitments was not due until next month.

Greece today denied reports that it was seeking a new €60bn bailout.

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