European Finance Chief Says He Expects Cut In Irish Bailout Interest Rate

Olli Rehn

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Ireland should “expect” a reduction in its bailout rate, according to the European Commissioner for Economic and Financial affairs Olli Rehn (via He also said that the rate cut could come “shortly” (via Zero Hedge).Rehn said (via Reuters):

Meanwhile, it is important that in defining the interest rate, debt sustainability is firmly taken into account and therefore the Commission has already some time ago proposed that we would have a reduction of the interest rate for Ireland, in order to help Ireland overcome its debt burden, in the same way as Greece, or now Portugal, and I would expect that this kind of an agreement could be taken shortly.

A rate cut for Ireland was largely anticipated. Rehn also said that a decision would be made on Greece in the next few weeks.

The most likely result from these comments is continued negotiation on the Greek issue, while Ireland is likely to see its rate cut as early as the European finance ministers conference, starting May 16. It’s likely the Portuguese bailout deal will also be concluded on that date.

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