Lenders follow EU lead to cut rate on Irish loan

THE cost of Ireland’s bailout will be cut by over €1 billion a year as other lenders have indicated they will follow the EU’s lead and reduce the interest rate on the entire €67bn loan.

But even as the news for Ireland improved, the markets showed their disillusion with the deal agreed at the summit to stabilise the euro, and Spain’s borrowing costs rose.

Britain’s chancellor George Osborne, announced they would lower the interest rate they were charging Ireland on their €3.7bn contribution, which was the highest of all the rates at 6.08%.