Ireland received a significant boost in its bid to seek an extension to the maturities of its bailout loans last night after finance ministers of the countries that share the euro currency backed the deal.
Finance ministers from all 27 EU states will consider the issue at a scheduled meeting in Brussels this morning, which is being chaired by Minister for Finance Michael Noonan.
EU commissioner for economic and monetary affairs Olli Rehn said he expected an arrangement to be concluded by next month’s meeting of finance ministers, which is scheduled to take place in Dublin.
Yum. Tasty carrot.
While agreement has been reached in principle to extend the maturities, the scope and technical detail of how the extension of maturities will be implemented have yet to be worked out. If agreed by European finance ministers today, it will fall to the bailout troika to devise the technical details of the proposal.
Eurogroup chairman Jeroen Dijsselbloem declined to comment on the scale of the adjustments or whether new conditions would be imposed on Ireland and Portugal as a result of any deal.
Thwack! Keep moving debt-donkeys.
(Mark Stedman/Photocall Ireland)