| 11.6°C Dublin

Loan extension agreed

THE Board of Directors of the European Financial Stability Facility (EFSF) has agreed to extend the maturities of its loans to Ireland and Portugal.

The average weighted maturity for all loans by the EFSF to Ireland and Portugal will now be extended by up to seven years.

This means that the amount of money that Ireland will need to borrow over the next decade will be significantly reduced.

"The extension will smoothen the debt redemption profile of Ireland and Portugal and lower their refinancing needs in the post-programme period," Klaus Regling, CEO of the EFSF said.

"It will enhance the confidence of market participants and thus protect Ireland and Portugal from refinancing risks".