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22/11/2010
UK To Aid Ireland With Loan 'Around £7bn'
The UK Chancellor has confirmed Britain's offering of a direct loan to aid the financial crisis in the Irish Republic.
Commenting on the move, George Osborne told the BBC that Ireland was a "friend in need" and it was in Britain's national interest to help.
When asked if the UK contribution would be about £7bn, Mr Osborne said "it's around that".
As negotiations continue Taoiseach Brian Cowen has confirmed a financial rescue agreement.
Commenting to BBC Radio 4 as a shareholder in the International Monetary Fund, the Chancellor said he was committed to be part of an international rescue of the Irish economy also offering a bilateral loan. He said: "That reflects the fact we are not part of the euro and don't want to be part of the euro.
"But Ireland is our very closest economic neighbour so I judged it to be in our national interest to be part of the international efforts to help the Irish."
Mr Osborne confirmed the rescue effort was “in the billions not the tens of billions." But he added the details of the agreement were still being discussed.
He said the loan recognised the "particular economic relationship" between Britain and Ireland and the rate of interest would be worked out as part of the package.
Criticising the decision, Douglas Carswell, Conservative backbencher told the BBC: "We shouldn't be paying to help keep Ireland in the euro. If we are going to pay to solve this crisis, we should be helping to pay Ireland to quit the euro.
"Ireland's misery is only going to end when it has its own currency again. At a time of austerity, again we are paying vast sums to the European Union."
In response the Chancellor said: "'I told you so' is not much of an economic policy. We've got to deal with the situation as we find it and it is in Britain's interests that we get some stability in Ireland, it's in Britain's interest that we are good neighbours."
He added the coalition government's efforts to tackle the deficit meant they were in a position to offer help - rather than being the recipients.
He also said he did not want Britain to "be part of a permanent bail-out mechanism for the euro".
Irish Finance Minister Brian Lenihan confirmed the amount would be less than 100bn euros (£85bn).
Speaking in Brussels, EU Finance Commissioner Olli Rehn said the loans would be provided to the Irish Republic over a three-year period.
The UK Chancellor will make a statement in the Commons later.
(BMcN/GK)
Commenting on the move, George Osborne told the BBC that Ireland was a "friend in need" and it was in Britain's national interest to help.
When asked if the UK contribution would be about £7bn, Mr Osborne said "it's around that".
As negotiations continue Taoiseach Brian Cowen has confirmed a financial rescue agreement.
Commenting to BBC Radio 4 as a shareholder in the International Monetary Fund, the Chancellor said he was committed to be part of an international rescue of the Irish economy also offering a bilateral loan. He said: "That reflects the fact we are not part of the euro and don't want to be part of the euro.
"But Ireland is our very closest economic neighbour so I judged it to be in our national interest to be part of the international efforts to help the Irish."
Mr Osborne confirmed the rescue effort was “in the billions not the tens of billions." But he added the details of the agreement were still being discussed.
He said the loan recognised the "particular economic relationship" between Britain and Ireland and the rate of interest would be worked out as part of the package.
Criticising the decision, Douglas Carswell, Conservative backbencher told the BBC: "We shouldn't be paying to help keep Ireland in the euro. If we are going to pay to solve this crisis, we should be helping to pay Ireland to quit the euro.
"Ireland's misery is only going to end when it has its own currency again. At a time of austerity, again we are paying vast sums to the European Union."
In response the Chancellor said: "'I told you so' is not much of an economic policy. We've got to deal with the situation as we find it and it is in Britain's interests that we get some stability in Ireland, it's in Britain's interest that we are good neighbours."
He added the coalition government's efforts to tackle the deficit meant they were in a position to offer help - rather than being the recipients.
He also said he did not want Britain to "be part of a permanent bail-out mechanism for the euro".
Irish Finance Minister Brian Lenihan confirmed the amount would be less than 100bn euros (£85bn).
Speaking in Brussels, EU Finance Commissioner Olli Rehn said the loans would be provided to the Irish Republic over a three-year period.
The UK Chancellor will make a statement in the Commons later.
(BMcN/GK)
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Northern Ireland WeatherThis Evening and Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
