IMF says interest rate on Ireland bailout to be cut

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The International Monetary Fund says the interest rate that Ireland will pay on its part of the bail-out deal with be cut.

The changes are due to internal reforms and the IMF says further cuts are possible because of other technical changes planned.

It will come as some good news to Fine Gael and Labour who are entering a fourth day of talks on forming a new coalition government.

Talks between the parties are said to be at a crucial stage with strongly divergent views on the time frame for getting our finances back on track.

The parties are not expected to reach agreement before Monday as their leaders Enda Kenny and Eamon Gilmore travel to Europe for separate meetings.