UK REACTION:THE UNITED Kingdom will lend nearly €8 billion to Ireland, including €4 billion in a direct bilateral loan at a cost of around 6 per cent – far higher than funds available from the IMF.
In all, €7.9 billion is coming from London, including €3.46 billion from the UK treasury that has already been paid to the IMF and EU for country rescue plans.
Last night, the treasury, which has faced considerable pressure about giving money to Ireland, would not confirm the details of the agreement, though the House of Commons is likely to be briefed today.
“It is in Britain’s national interest,” said chancellor of the exchequer George Osborne as he arrived in Brussels for yesterday’s meeting of EU finance ministers.
“It is money we fully expect to get back and I think it will help Ireland get on a fully stable path back to growth,” he added.
Mr Osborne has won a major concession from EU partners, particularly Germany, by ensuring the UK will not be automatically part of any euro rescue package after 2013.
The UK takes part in the €60 billion European Financial Stability Mechanism, which former chancellor Alistair Darling agreed to days before leaving office in May.
