EU bailout loan interest to be €9bn

THE EU and member states stand to make least €9 billion in profit from the interest they are charging on Ireland’s bailout loans.

It comes as the troika of the EU, IMF, and ECB today begin their latest quarterly review of the country’s performance in meeting the bailout terms.

The EU part of the bailout is made up of loans from the European Financial Stabilisation Mechanism (EFSM), European Financial Stability Facility (EFSF) and bilateral loans from Britain, Sweden and Denmark.

Mr Noonan told the Dáil the interest amounted to €4.9bn on the €22.5bn EFSM loan and €3.3bn on the €17.7bn ESFS loan. The profits in interest are returned to member states.

Some €650 million will be paid on the €3bn British loan. Rates are to be agreed with Denmark and Sweden.

Meanwhile, Mr Noonan said a tough budget lay ahead which could see the Government ask for a re-negotiation of Ireland’s rescue loan terms. Cuts of €4bn are being forecast.