Deal to save €375m on IMF loans ‘not done yet’

Ireland’s plan to save up to €375m in interest repayments to the IMF is getting an encouraging response from EU institutions, but the deal has not been secured yet, Finance Minister Michael Noonan has warned.

The proposal to borrow on the markets at around 2% to pay off around €18bn to the IMF that is currently charging around 5% “is logical”, and sets a good precedent for other programme countries, a senior EU official said.

The minister met a positive response from European Economics Commissioner Jyrki Katainen, who as Finnish finance minister at the start of the crisis was very critical of Ireland and against any easing of the loan conditions.