Eurozone 'to hold talks on cutting Irish bailout interest'

Eurozone finance ministers will discuss reducing the interest rate on the bloc's part the 85 billion Irish bailout, it was reported today.

The Irish Times said the talks could take place when ministers meet in Brussels on Monday, where they will debate the EU/IMF bailout to Ireland as well as the Greek financial rescue plan.

Irish opposition politicians have repeatedly criticised as expensive the 5.8% interest rate on the financial package.

But a eurozone source said lowering the interest rate was "at the discussion stage, not the decision stage".

A spokesman for EU Economic and Monetary Affairs Commissioner Olli Rehn said he was "not aware of such a discussion being scheduled and taking place", but added that the commission did not set the agenda of the euro group or the ECOFIN council of EU finance ministers.

Irish finance minister Brian Lenihan said last week that the interest rate for funding from the EU and IMF was determined by "a common approach for any borrower".

"Accordingly, any changes to these rates cannot be negotiated for Ireland in association and must be seen in the wider context," Lenihan said.

The IMF said the Irish government would not be able to renegotiate the interest rate on its portion of the funding.

The IMF contributed 22.5 billion to the bailout, another 45 billion came from Europe and Ireland will contribute 17.5 billion.