Long-flagged changes to the structure of the IMF have led to small reductions in the interest rates to be paid on Ireland's bailout loans, writes Dan O'Brien.
The IMF announced yesterday that the average lending interest rate, when the €22.5 billion in lending is fully drawn down, will be 3.04 per cent on credit outstanding for less than three years. This is down from 3.17 per cent previously.
The new rate on credit outstanding for longer than three years will be 3.85 per cent, a reduction from 4.04 per cent.
The calculation is based on a range of factors, one of which is the relative size of members’ economies from which each country’s IMF “quota” is determined. Yesterday’s change came about because Ireland’s quota was raised in the framework of all members having their quotas reassessed.
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