herald

Tuesday 17 October 2017

We could use Euro fund

IRELAND could draw on the European stabilisation fund at a 5pc interest rate, according to the head of the fund Klaus Regling.

However, it's expected that Greece will be the only country to access the fund.

Mr Regling, who carried out an indepth investigation into the cause of the banking crisis in Ireland, said the interest rate on any European Financial Stabilisation Facility (EFSF) loans to countries would be "comparable" to the 5pc rate that Greece pays for its emergency funding from fellow euro-area economies.

"There is a general understanding that borrowing costs would be comparable to the Greek case," he said. "This is around the 5pc."

Ireland's borrowing costs currently stand at 6.3pc in the market.

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