Menu
04/03/2011
IMF Announce Interest Cut For Ireland
Despite an announcement to the contrary by the German Chancellor on Thursday, Ireland's bailout interest rate is set to decrease.
The news comes only a day after Angela Merkel had ruled out lowering the huge interest rate facing Ireland over its international bailout conditions.
The International Monetary Fund has now said the interest rate Ireland will pay as part of the €85 billion IMF/EU rescue package will be reduced.
The reduction is part of technical changes in IMF 'quotas', or the relative rates assigned to economies according to their size, and will mean a fall by 19 basis points in the interest Ireland has to pay on much of its €22.5bn IMF debt.
The complicated changes will equate to roughly a reduction by 0.1% for debt outstanding less than three years, and 0.2% on debts outstanding longer than three years.
IMF Managing Director, Dominique Strauss-Kahn said the changes "will represent the most fundamental governance overhaul in the IMF's 65-year history" and were the biggest-ever shift of influence in favour of "emerging market and developing countries".
The adjustments are extremely timely as on Wednesday Chancellor Merkel, who was one of the architects of the EU and International Monetary Fund (IMF) bailout for Ireland, said it was "unlikely" she'd agree to cut interest rates on rescue loans to Ireland and Greece.
According to financial newsgroup Bloomberg, the source of the information came from anonymous officials that attended the closed-door meeting. The officials said that Ms Merkel also planned to levy a number of extra conditions aimed at keeping pressure on each country to curb spending.
Fine Gael Leader and Taoiseach in waiting, Enda Kenny, targeted a cut the rate on emergency loans during his election campaign and is preparing for talks on Friday with Ms Merkel and European allies in Helsinki.
Mr Kenny and Greek Prime Minister George Papandreou both visited Merkel in Berlin last month to canvass support for a cut in the interest rates.
However, speaking on Wednesday night, Ms Merkel stood strong saying: "We can't artificially lower interest rates. They are ultimately an expression of confidence in a country.
"We can't get to a point where Ireland pays lower interest rates than Portugal."
Mr Kenny is seeking to lower the 5.8% interest rate on aid loans agreed by Fianna Fail during their negotiations with the European Union and the IMF. Mr Kenny also wants to end the protection of senior bank bondholders.
(DW)
The news comes only a day after Angela Merkel had ruled out lowering the huge interest rate facing Ireland over its international bailout conditions.
The International Monetary Fund has now said the interest rate Ireland will pay as part of the €85 billion IMF/EU rescue package will be reduced.
The reduction is part of technical changes in IMF 'quotas', or the relative rates assigned to economies according to their size, and will mean a fall by 19 basis points in the interest Ireland has to pay on much of its €22.5bn IMF debt.
The complicated changes will equate to roughly a reduction by 0.1% for debt outstanding less than three years, and 0.2% on debts outstanding longer than three years.
IMF Managing Director, Dominique Strauss-Kahn said the changes "will represent the most fundamental governance overhaul in the IMF's 65-year history" and were the biggest-ever shift of influence in favour of "emerging market and developing countries".
The adjustments are extremely timely as on Wednesday Chancellor Merkel, who was one of the architects of the EU and International Monetary Fund (IMF) bailout for Ireland, said it was "unlikely" she'd agree to cut interest rates on rescue loans to Ireland and Greece.
According to financial newsgroup Bloomberg, the source of the information came from anonymous officials that attended the closed-door meeting. The officials said that Ms Merkel also planned to levy a number of extra conditions aimed at keeping pressure on each country to curb spending.
Fine Gael Leader and Taoiseach in waiting, Enda Kenny, targeted a cut the rate on emergency loans during his election campaign and is preparing for talks on Friday with Ms Merkel and European allies in Helsinki.
Mr Kenny and Greek Prime Minister George Papandreou both visited Merkel in Berlin last month to canvass support for a cut in the interest rates.
However, speaking on Wednesday night, Ms Merkel stood strong saying: "We can't artificially lower interest rates. They are ultimately an expression of confidence in a country.
"We can't get to a point where Ireland pays lower interest rates than Portugal."
Mr Kenny is seeking to lower the 5.8% interest rate on aid loans agreed by Fianna Fail during their negotiations with the European Union and the IMF. Mr Kenny also wants to end the protection of senior bank bondholders.
(DW)
Related Northern Ireland News Stories
Click here for the latest headlines.
05 February 2009
Three NI Banks Cut Interest Rates
Most of Northern Ireland's big banks have agreed to adopt the latest UK interest rate cut. First Trust, Bank of Ireland and Ulster Bank have all brought their base rates into line with the reduction. The Bank of Ireland and Ulster Bank both said they were reviewing how the cut would affect standard variable rate products.
Three NI Banks Cut Interest Rates
Most of Northern Ireland's big banks have agreed to adopt the latest UK interest rate cut. First Trust, Bank of Ireland and Ulster Bank have all brought their base rates into line with the reduction. The Bank of Ireland and Ulster Bank both said they were reviewing how the cut would affect standard variable rate products.
03 March 2011
Merkel Refuses Irish Bailout Renegotiation
German Chancellor Angela Merkel has virtually ruled out lowering the huge interest rate facing Ireland over the bailout conditions.
Merkel Refuses Irish Bailout Renegotiation
German Chancellor Angela Merkel has virtually ruled out lowering the huge interest rate facing Ireland over the bailout conditions.
06 November 2008
NI Welcomes Slashed Interest Rate
There has been a broad welcome for the Bank of England's decision to cut interest rates in the UK to 3%. Interest rates are at their lowest since 1955, and the one-and-a-half percentage point cut is the biggest since 1981.
NI Welcomes Slashed Interest Rate
There has been a broad welcome for the Bank of England's decision to cut interest rates in the UK to 3%. Interest rates are at their lowest since 1955, and the one-and-a-half percentage point cut is the biggest since 1981.
14 August 2023
Bank Of England Increase Impacting Housing Market
The Bank of England's latest base rate increase is having a "notable impact" on the housing market, curtailing activity and reducing purchaser confidence, according to the latest research from the Ulster University.
Bank Of England Increase Impacting Housing Market
The Bank of England's latest base rate increase is having a "notable impact" on the housing market, curtailing activity and reducing purchaser confidence, according to the latest research from the Ulster University.
06 February 2003
Bank of England drop interest rate to 3.75%
In a surprise move the Bank of England today cut interest rates by 0.25% taking the UK interest rate to 3.75%, the lowest figure in almost 50 years.
Bank of England drop interest rate to 3.75%
In a surprise move the Bank of England today cut interest rates by 0.25% taking the UK interest rate to 3.75%, the lowest figure in almost 50 years.
-
Northern Ireland WeatherThis Evening and Tonight:It will be cloudy with a spell of heavy rain pushing south through late evening and the early hours, soon followed by some clear spells. Minimum temperature 6 °C.
