Menu
07/03/2011
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.
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 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)
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 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 Business News Stories
Click here for the latest headlines.
04 September 2001
Bank likely to leave interest rate unchanged
The Monetary Policy Committee (MPC) of the Bank of England are likely to leave interest rates unchanged at 5 per cent. The Committee are due to begin their latest two-day meeting amid a spate of calls for another cut in the interest rate.
Bank likely to leave interest rate unchanged
The Monetary Policy Committee (MPC) of the Bank of England are likely to leave interest rates unchanged at 5 per cent. The Committee are due to begin their latest two-day meeting amid a spate of calls for another cut in the interest rate.
14 August 2001
Inflation rate fall may herald a further interest rate cut
Speculation is growing that a fall in the underlying inflation rate, down to 2.2 per cent, may give the Bank of England’s Monetary Policy Committee further room for manoeuvre to lower interest rates. Continued severe pressure on manufacturing industry has prompted further calls from industry leaders seeking another cut in the UK interest rate.
Inflation rate fall may herald a further interest rate cut
Speculation is growing that a fall in the underlying inflation rate, down to 2.2 per cent, may give the Bank of England’s Monetary Policy Committee further room for manoeuvre to lower interest rates. Continued severe pressure on manufacturing industry has prompted further calls from industry leaders seeking another cut in the UK interest rate.
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.
08 January 2004
UK Interest rates sticks at 3.75%
As expected, the Bank of England has decided to hold the base rate at 3.75% today. The Bank's Monetary Policy Committee (MPC) opted to hold the rate following a quarter point rise in December - the first rise in four years. However, analysts are continuing to warn consumers that rises are imminent in the year ahead.
UK Interest rates sticks at 3.75%
As expected, the Bank of England has decided to hold the base rate at 3.75% today. The Bank's Monetary Policy Committee (MPC) opted to hold the rate following a quarter point rise in December - the first rise in four years. However, analysts are continuing to warn consumers that rises are imminent in the year ahead.
07 November 2002
Bank of England holds UK interest rate at 4%
The Bank of England has held the main UK interest rate at 4% for the twelfth consecutive month. This is despite a larger than anticipated cut by the US Federal Reserve. Leading economists were split on whether or not interest rates would or should be dropped.
Bank of England holds UK interest rate at 4%
The Bank of England has held the main UK interest rate at 4% for the twelfth consecutive month. This is despite a larger than anticipated cut by the US Federal Reserve. Leading economists were split on whether or not interest rates would or should be dropped.
-
Northern Ireland WeatherToday:After a dry start this morning rain will spread from the northwest across all parts. This afternoon will be dull with some patchy rain and drizzle. Becoming much milder through the afternoon. Maximum temperature 11 °C.Tonight:A cloudy evening and night with a little light rain or drizzle, perhaps some clear periods developing along the east coast. A very mild night everywhere. Minimum temperature 10 °C.
