Lagarde departure dents hope of loan rate cut

IRELAND’S bid to reduce the EU/IMF loan interest rate, which could save the country up to €1 million a day, suffered a blow last night as France’s finance minister said she could not deliver any such deal.

However, a change in the rules governing the EU’s rescue fund was greeted as a breakthrough because it increases the country’s chances of being able to borrow at affordable rates next year.

Despite indications that a reduction in the loan interest rate from 5.8% to 5% was a done deal, those hopes were dashed within hours by Christine Lagarde’s almost certain appointment as IMF managing director.