‘Ireland should get 7-year loan extension’

Ireland and Portugal should get seven more years to repay loans from the EU to facilitate their return to full market financing, according to a recommendation from international lenders to EU policymakers.

Such a move would mark a significant concession to Ireland, helping to seal a return to normal borrowing on markets, as well as offering a significant boost to Portugal as it struggles to push through spending cuts.

The average maturity of EU loans to Ireland is 12.5 years and to Portugal between 12.5 and 14.7 years depending on which EU fund provided the money.