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Interest terms ‘not agreed on Irish loan’

The UK has not yet agreed the rate of interest on its bilateral bailout loan to Ireland, an MP has claimed.

Tory Eurosceptic Christopher Chope told MPs the first £400m of the UK's £3.2bn loan to Ireland was paid on October 14 but the Treasury had yet to agree an interest rate.

In a question to Commons leader Sir George Young, the MP said: “Can we have a statement about the rate of interest we are going to be charging the Irish on the first tranche of the loan to Ireland?

“Four hundred million (pounds) was paid on October 14 — and I have been told in answer to a written Parliamentary question that we haven't yet agreed on the rate of interest. But the rate of interest would be significantly lower than it was at the time we were discussing this before the House earlier on in the year, despite the fact that the Irish government bond rate is still well over 8%.”

Sir George said there would be a chance for Mr Chope to quiz a Treasury minister at a Westminster Hall debate next week.

Belfast Telegraph