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Thursday 16 August 2018

Former IMF boss says rate not up for change

A FORMER IMF senior official has said that the agency charges a standard interest rate to all countries and it will not be possible to renegotiate the cost of bailout funds.

The IMF is contributing €25bn of the €85bn rescue fund, with interest that's charged at the IMF's 'standard draw-down rate'.

Donal Donovan, who retired as a deputy director of the IMF in 2005, said that there were little alternatives when the EU/IMF deal was agreed.

"The Irish banks would have run out of liquidity without a deal, had Jean-Claude Trichet stuck to his veiled threats," he said.

Mr Donovan, speaking at a meeting at the Institute for International and European Affairs (IIEA) in Dublin, said it was unlikely that any single issue could cause the rescue deal to break down.

EU leaders are currently discussing whether lower rates could be offered as part of a wider euro stabilisation programme.

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