Good news for Ireland on a number of fronts

Euro zone finance ministers have agreed in principle to Ireland refinancing expensive IMF rescue loans with cheap finance raised in the market. If, as expected the deal is done and dusted, the new, lower cost of borrowing is estimated to save the State €375m in interest charges.

Lower debt interest bill for Ireland

Positive reaction in Europe to refinance request

Currently, the IMF loans carry an interest rate of nearly 5pc and when this facility was taken out during the worst days of the State’s IMF bailout negotiations, 5% was a relative bargain. However the State can now borrow for less than 2%.
The 5pc rate applies to €18bn of the €22.5bn of IMF bailout loans.
The technical formalities of putting the new deal into practise involves all of the creditors under the original bailout deal agreeing at the same time and this is the main reason why the agreement from all creditors may not be completed in time for the upcoming Budget. All signs point to a groundswell of goodwill towards Mr. Michael Noonan, the Minister for Finance as he canvasses support.

Ireland leads euro zone with higher industrial output
IRELAND has topped the list of euro zone industrial output data for July. In statistics just released by Eurostat, the increase of 1.0 % in industrial production in the euro area in July 2014, compared with June 2014, is due to production of capital goods rising by 2.6%, non-durable consumer goods by 1.2% and intermediate goods by 0.5%, while durable consumer goods fell by 1.2% and energy by 1.3%.

In the EU28, the increase of 0.7% is due to production of capital goods rising by .3%, non-durable consumer goods by 0.8% and intermediate goods by 0.4%, while energy fell by 0.6% and durable consumer goods by 0.8%.The highest increases in industrial production were registered in Ireland(+11.3%), Estonia(+2.8%), Slovenia (+2.3%) and Croatia(+2.1%), and the largest decreases in Denmark(-4.7%), Malta (-4.2%) and Greece(-1.7%).

The increase of 2.2% in industrial production in the euro area in July 2014,compared with July 2013, is due to production of capital goods rising by 4.6%, non-durable consumer goods by 4.0%and intermediate goods by 1.6%, while durable consumer goods fell by 0.2% and energy by 4.4%.In the EU28, the increase of 2.0% is due to production of capital goods rising by 4.5%, non-durable consumer goods by 2.8%, intermediate goods by 1.9%and durable consumer goods by 0.3%, while energy fell by 3.5%.The highest increases in industrial production were registered in Ireland(+17.6%), Hungary(+12.3%)and Slovenia(+9.2%), and the largest decreases in Denmark(-6.4%), Sweden(-5.0%) and Finland(-2.7%).

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