Rabbitte raises hopes of bailout rate cut

The Minister for Communications, Energy and Natural resources Pat Rabbitte has said he is hopeful Ireland will be able to get a reduction in the interest rate on the EU/IMF bailout loan.

Mr Rabbitte said he hopes a cheaper deal may be negotiated when European Union finance ministers meet on May 16.

However, many economists over the weekend warned that Ireland is heading for bankruptcy unless it pulls out of the bailout deal.

Writing in the Irish Times, the economist Morgan Kelly said Ireland's debts are likely to hit €250bn by 2014.

Lecturer in Finance at Trinity College Dublin, Constantin Gurdgiev agrees that this level of debt is unsustainable and said Ireland should not accept a bailout loan from Europe.