Bailout rate cut delayed for two weeks

IRELAND will have to wait at least two more weeks to get the cut in interest rate on its EU-IMF loan, but Taoiseach Enda Kenny appeared confident of getting it following his second EU summit.

In the meantime the Government and the Central Bank are in high-level negotiations with the European Central Bank over reducing taxpayers’ exposure to the banks, which could include forcing bondholders to take losses.

EU leaders agreed to let finance ministers deal with reducing the interest rate from 5.8% to 4.8% and saving Ireland €450 million a year. Mr Kenny made it clear they could not expect any major concession from Ireland in exchange, stressing the country had absorbed three years of austerity measures.