Irish to Pay 5.8% for Bailout, Senior Debt Protected
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Ireland will pay an average 5.8 percent for international bailout loans as part of an agreement that protected the senior bondholders of Irish banks and preserved the country’s low corporate tax policy.
The state was granted funds amounting to 67.5 billion euros ($90 billion) with an average duration of 7 1/2 years by the European Union and International Monetary Fund, the government said yesterday. The average interest compares with a rate of around 5 percent charged to Greece for three-year loans earlier this year. Subordinated bank bond holders may have to accept “big haircuts,” Finance Minister Brian Lenihan said.