The length of time to pay back the loan has been extended
As part of a wider EU debt deal European leaders in Brussels agreed to lower the rate to between 3.5% and 4% from around 6% on Thursday evening. The length of time to pay back the loan has been extended to 15 years from seven and a half years. The lower rate between a 600-700m Euros saving per year for the Irish exchequer, Irish officials estimate. As eurozone leaders agreed a new bailout package for Greece worth 159bn Euros made the details emerged.
Portugal will also benefit from longer repayment periods and lower interest rates on its current debt rescue packages. By the deal agreed and came with “no strings attached”, he debt burden on the Irish people has been made lighter, Irish Prime Minister Enda Kenny said. The measures would benefit Ireland, Michael McGrath, Fianna Fail finance spokesman said. He added on corporate tax harmonization, the government still needs discussions with other EU partners to clarify any commitment. The agreement as a “missed opportunity”, Pearse Doherty, Sinn Fein’s finance spokesman described. Pearse Doherty added that it would do little to reduce Ireland’s growing debt burden.
Default was now on the agenda, independent TD Shane Ross warned. After the Irish government conceded the banking crisis in the country had grown too big, on last November the Irish government applied for financial help from the EU.