Labour Blog

Labour Blog

Punitive interest rate raised in Dáil

Posted on December 15, 2010 at 04:27 PM

"Will the Taoiseach tell us why Ireland is being charged a very high 3 per cent interest penalty on this money which is coming through the European Union? Why did the Government agree to it?, the Labour Leader Eamon Gilmore TD asked during Leaders' Questions this morning.

"When money was loaned to other countries under that provision of the EU treaties and I have referred to the situations in Latvia, Hungary and Romania, the additional margin was not applied. Thise countries were not charged an additional 3 per cent on the money lent. Ireland is the first country being charged a penalty rate of interest.

"Why did the Irish Government agree to being charged a penalty rate of interest that will cost the Irish taxpayers almost €5,000 million over the period of repayment when such a penalty has never been applied to a European country borrowing through the mechanisms provided for by Article 122 of the EU Treaties?

You can read the full transcript of Leaders' Questions on the Oireachtas website.

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