1% cut in EU bailout loans rate ‘after June’

IRELAND should automatically get a 1% reduction in the interest rate on its EU loan after June, European Commission sources have confirmed.

Member states have already agreed the new rate should be reduced to 2% rather than 3% over the borrowing rate, but this has to be approved by all the member states governments by June.

In the meantime, all the MEPs stressed the need to cut the cost of the loan when they met Economics Commissioner Olli Rehn in the European Parliament yesterday.