Debt rescheduling sought, says Howlin

THE GOVERNMENT’S ambition of rescheduling the debt incurred as part of the EU-IMF bailout package has been reiterated by Minister for Public Expenditure and Reform Brendan Howlin.

The Minister also said further cuts in pay for the elite in the public sector was on the Government’s agenda.

In an interview with the news agency Reuters, Mr Howlin said the Government hoped to reschedule the EU-IMF portion of its debt in due course.

“Obviously long-term rescheduling of debt is something that would be desirable and we will deal with it,” the Minister said.

The Minister added that Ireland was also hoping to get a longer-term commitment from the European Central Bank (ECB) on the provision of emergency liquidity to Irish banks.

“We want a better interest rate and we want affordable long-term liquidity for the banks. We had some comfort from the statement from the ECB after the recapitalisation announcement but it is difficult when it is on a medium-term basis and that is something we are working on still.”

Mr Howlin rejected suggestions that the Irish Government could help its case for an interest rate cut on the EU-IMF deal by accelerating its programme of public spending cuts.

“I don’t see further austerity as being part of the bargaining chip on an interest rate deal,” he said.

“It would be entirely unreasonable if interest rate reductions that are available to others wouldn’t be available to ourselves . . . We certainly don’t want to be treated and won’t accept treatment less favourable than other euro zone partners,” he added.