Hopes for deal on bailout at eurozone summit

A RADICAL relaxation of Ireland’s strait-jacket bailout deal could see the payback period extended by 14 years at today’s eurozone crisis summit.

A breakthrough agreement extending the loan period from seven-and-a- half years to 21 years is on the table, as well as a new facility to buy back the country’s existing debt, Government sources have told the Irish Examiner.

While such moves would not impact on the next two austerity budgets, they would be expected to give the Exchequer an extra €1bn per year from 2014.