The interest rate on Ireland’s bailout package is to be cut by two percent and the loan time doubled, as a result of a new Euro-wide rescue mechanism.

The new deal is understood to be worth between €600 and €800 million a year to Ireland, the Irish Times reports.

According to a draft statement drawn up by euro zone leaders today, Ireland’s bailout interest rate will drop to around 3.5 percent and Ireland will now have 15 years to pay back its debts.

Ireland currently pays an average of 5.8 percent on its multi-million bailout package which was originally supposed to be repaid over 7.5 years.

Meeting in Brussels today, the Euro zone leaders agreed the deal, as well as a lower interest rate for the Greek and Portugal bailout package.
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The deal has been offered on the condition that the government “participates constructively” in future talks on a common EU-wide corporate tax .

Today’s meeting in Brussels was attended by 17 eurozone leaders, IMF head Christine Lagarde, ECB chief Jean-Claude Trichet, and a representative from the Institute of International Finance.