Cut to interest rate on €85bn bailout due in June

A CUT in the interest rate owed on the €85 billion EU/IMF bailout is expected to be granted in June, according to sources in both Dublin and Brussels.

But it may not apply until after the next instalment of the loan, worth €8.4bn, is paid, meaning this and the €5bn already received will be subject to a higher rate.

Officials from the EU, the IMF and the European Central Bank arrived in Dublin yesterday to examine the state’s finances and make sure the Government is keeping its side of the bailout deal agreed last November.