Changes 'to save Ireland €10bn'

Michael for Finance Michael Noonan said today changes to Ireland’s bailout terms may generate savings to the State of up to €…

Michael for Finance Michael Noonan said today changes to Ireland’s bailout terms may generate savings to the State of up to €10 billion over the period of the loans.

Mr Noonan, speaking to reporters in Wroclaw, Poland today, said that the Government expects to save about €800 million to €900 million next year as part of the deal.

Mr Noonan said he now wants to examine the terms of the loans, including possibly availing of the terms to extend the debt.

The Government won't opt "automatically" for an extension, though it will look for a "pattern of repayments that don't stack" up against the it, he said.

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Mr Noonan, who is due to meet European Central Bank president Jean-Claude Trichet tomorrow, also said he wants to discuss with European authorities the possibility of refinancing funding pledges to Anglo Irish Bank from the State.

He said said any potential refinancing would not affect bondholders and the Government would not take action that would necessitate more capital for the nationalised bank.

The Minister also said he was interested in discussing possible purchases of Irish debt by the European Financial Stability Facility.