UK offers $11.17 billion loan to Irish Republic

UK offers $11.17 billion loan to Irish Republic

2010-11-23 00:33:27 GMT+7 (ICT)

LONDON (BNO NEWS) -- The UK Chancellor of the Exchequer George Osborne on Monday announced that the UK offered a direct loan to Ireland of about £7 billion ($11.17 billion) in addition to the international rescue package from the European Union.

Osborne informed the Members of the Parliament (MEPs) that a loan was offered to the Irish Republic but details are still being under discussion. The UK Chancellor said that Ireland is a friend in need and it was in Britain’s national interest to help.

"Ireland is our very closest economic neighbor so I judged it to be in our national interest to be part of the international efforts to help the Irish," said the UK Chancellor.

The Chancellor's announcement came moments after it was revealed that the European Union agreed on lending money to Ireland on behalf of all 27 members and the UK will pay its share and offered the loan in addition in order to help Ireland having a stable economy and banking system.

Osborne also told the MEPs that the UK is considering offering a bilateral loan to Ireland as it takes 5 percent of British exports, which is more than the amount from Brazil, Russia, India and China combined. He said that such bilateral loan will recognize the deep connection between the two countries.

Osborne remarked that the UK a shareholder in the International Monetary Fund and is committed to pay a share of the EU's loan. However, the additional British loan represents the fact that the UK is not part of the euro and does not want to be part of it, Osborne concluded.

The UK Chancellor said that it's a tragedy Ireland's current economic situation despite the efforts to improve its economy in recent years.

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