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IMF sets Portugal bailout loan rate, EU not yet

Associated Press
Poul Thomsen, center, deputy director of the International Monetary Fund European department, leaves the headquarters of the Portuguese conservative Popular Party after a meeting to explain the terms of the Portuguese bailout Wednesday, May 4, 2011 in Lisbon. The deal reached by negotiators from the EU, the European Central Bank and the International Monetary Fund with the Portuguese government is not final until it has been endorsed by the opposition parties and other eurozone governments. (AP Photo/ Francisco Seco)
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Poul Thomsen, center, deputy director of the International Monetary Fund European department, leaves …

The International Monetary Fund's top official negotiating Portugal's bailout says the country will have to pay interest rates between 3.25 percent and 4.25 percent for the IMF's portion of the rescue loans.

Poul Thomson said Thursday the lower rate will apply for the first three years of the bailout, while the higher one will kick in after that.

The European Union's representative Juergen Kroeger said the interest rates to be charged for the EU's portion of the loans has yet to be determined.

The IMF will supply one third of the overall euro78 billion ($115 billion) package, with the rest coming from the EU and eurozone countries.

The officials still expect EU finance ministers to sign off on the bailout on May 16.

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