Lenihan says state will not lose money on Greek loan

FINANCE Minister Brian Lenihan, has said the conditions being attached to the state’s loan to Greece will ensure that Ireland does not lose any money.

He also said Ireland’s own exposure to Greek sovereign debt was minimal. But he conceded that international banks based in Dublin’s IFSC could have more substantial exposures to Greek debt.

Speaking after he had briefed the Cabinet on the bailout, Mr Lenihan said Ireland will contribute about €1.312 billion over a three-year period, with the first tranche of that – slightly under €500 million – going to Greece this year. Greece will pay interest on the loan, thereby covering any Irish costs in providing the money.