Forex Economic News – Discussions of lower interest rate of loans in Ireland

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A recent publication by the BBC news agency has brought to light discussions on the possibility of reducing the interest rates on the loans taken by Ireland. However no final decisions neither what the collaterals to be given as a return are known. According to the British network the rate of 5.8% as it is defined in Dublin should be limited, however the extent to which this can happen is not clear. The European Union could lower interest rates on the bailout loans not only to Ireland but also Greece. According to the European Commission the matter will be looked at with a decision to be implement within the next number of weeks . This could lower the interest rate, ease the repayment terms and possibly help the Euro recover from the very low levels it has dived into the last 4 days.

According to sources by BBC an agreement could come in place even before the next meeting of the finance ministers scheduled on the 17 May. However it is critical to know what will be the cost of such agreement for the Irish public. Dublin has stated it will never increase the tax on small businesses despite the pressures to accept it. It is however likely to change the tax policy and tax base than the income tax, notes the BBC. The bailout amount of Ireland which is received by both the EU and the IMF has currently reached to 85 billion euros.