The troika of international creditors comprising the European Commission, European Central Bank and the International Monetary Fund may extend a deadline for Ireland to pay back 85 billion euros in loans to 30 years, from the current 15 years, Irish RTE TV channel reported on Monday.
RTE quoted sources familiar with the situation that the troika believed “Ireland’s borrowing costs would be lower if it were not for the intensification of the eurozone crisis.”
The sources also told the channel that if the troika extended the terms of the repayment, which has not yet been discussed with the Irish government and EU leaders, it would help Ireland return to the markets.
The troika approved a three-year loan to Ireland of up to 85 billion euros in December 2010. The funds were provided in exchange for the implementation of an economic and financial recovery program of the country. Last week the IMF approved the sixth tranche worth 1.4 billion euros to Ireland.