Bailout rate reports 'media speculation'

REPORTS THAT the EU may be considering a reduction in the Irish bailout interest rate of 5.7 per cent are “media speculation”, according to Tánaiste Mary Coughlan.

The Opposition described the reports as a “very clear chink of light”.

Ms Coughlan told the Dáil that it was “manageable” to deal with the current interest rates available to the Government. “However, at the same time, we would welcome any developments which would give effect to the lowering of rates to Ireland.”

She added, however, that they were dealing with “issues that were raised by the media” at a press conference where European commissioner Olli Rehn was asked about interest rates and had said the rates charged to Ireland “are in line with the [European] Council decision last year on the euro area loan facility to Greece and following intensive discussions with member states”.

Ms Coughlan said “there is nothing further that the Government wants to comment on those considerations”.

The Tánaiste was responding to Opposition calls for clarification of reports of discussions.

Fine Gael leader Enda Kenny asked if the Government intended “to have an input” into reports that there would be discussions “next week at the Ecofin meeting” about the possibility of Ireland paying less interest.

Labour finance spokeswoman Joan Burton called for the Government to have a debate on the issue. She said “it is clear that there is now an acceptance among many member states that the rates of interest negotiated by the Government as a sovereign regarding the IMF-EU deal are penal and that nothing in the EU treaties makes provision for a three-percentage-point facilitation fee penalty to be charged to a country like Ireland”.

Ms Burton said there was a “very clear chink of light from the president of the commission”.