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Rehn backs rate talks

EU COMMISSIONER Olli Rehn said Ireland and Greece have a strong case for requesting a lower interest rate on their bailout loan.

The Commissioner for economic and monetary affairs said that the only two countries in the EU who availed of the EU bailout facility should go back to the table.

"The issue now and tomorrow is debt sustainability and therefore I can see that there is a case to reduce the interest rates paid by Greece and Ireland," Rehn said.

Ireland is currently paying an average interest rate of 5.8pc and the new government has already said that it will push for reduced rates.