Portugal to overshadow Irish bailout rate at meeting
Portugal's request for financial aid from Europe looks set to dominate a meeting of EU Ministers, which continues in Hungary today.
Finance Minister, Michael Noonan, had hoped to seek a re-negotiation of the interest rate being applied to Ireland's bailout, but it is feared that will now be overshadowed.
Portugal's caretaker government is expected to seek in the region of €85bn.
It is not yet clear if the International Monetary Fund will be involved in any such deal, but Germany has previously demanded that that be a pre-condition of EU bailout plans.
The bailout has turned the spotlight on nearby Spain, but it is vowing not to follow its neighbour in seeking aid.
With today's meeting in Hungary likely to be overshadowed by Portugal's woes, the renegotiation of the Irish bailout is slipping down the agenda.
However, the head of the Department of Finance has told Minister Michael Noonan there is scope for the new Government to modify aspects of Ireland's bailout during the EU/IMF's first review of the deal.
