Ireland could get long-term cheap loan

THE Government could win a significant victory at next week’s EU leaders’ summit with up to half the debt being hived off into a long-term cheap loan and no pressure to burn bondholders.

The shape of a deal opening the way to greater economic union became clearer during a speech by French President Nicolas Sarkozy last night.

In a 50-minute speech, Mr Sarkozy told 5,000 supporters gathered in Toulon that there would be no more debt write-downs after the current deal being negotiated for Greece.