Noonan: .5% interest-rate cut agreed on segment of bailout loan

The interest rate payable by Ireland on the €17.7bn EFSF segment of the EU-IMF loan has been reduced further by .5%, Finance Minister Michael Noonan has said.

Speaking from Poland where EU finance ministers are meeting, he said the reduction will save Ireland between €1.1bn and €1.2bn per year, when combined with the July 21 cut and the reduction announced this week by the European Commission.

A further requirement for Ireland to pay a 20% collateral "buffer" on EFSF loans drawn down had also been dropped.

This move would earn the State a rebate of around €600m in 2016.