Rehn backs deal on Irish bailout loan

The EU's economic and monetary affairs commissioner Olli Rehn has said he backs the idea of granting an extension to Irish bailout loans.

Speaking to CNBC in Brussels, he said it is "favourable" because it will facilitate a successful return to market financing for Ireland, which is in the profound interest of the whole EU.

He also said he backs similar proposals for Portugal.

Eurozone Finance Ministers agreed last night to reschedule the loans made to Ireland by the EFSF.

The Government is due to pay another €3.1bn by the end of the March unless a deal is reached with the European Central Bank.