Kenny denies bailout rate cut already agreed

The Taoiseach Enda Kenny has denied that an interest rate cut for Ireland on the European portion of the bailout deal is already agreed.

The Taoiseach Enda Kenny has denied that an interest rate cut for Ireland on the European portion of the bailout deal is already agreed.

It was reported at the weekend that the 1% rate cut was a done deal.

But Mr Kenny said negotiations are ongoing and he hopes they can be finalised by Finance Ministers at a meeting later this month.

It comes as Greece looks set to need a new bailout, as the €110bn rescue package agreed a year ago is not going to be enough.

One ratings agency, Standard and Poors, suggests Greece needs to secure a halving of the interest rates on the funding to make it affordable.

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