A PLEDGE TO provide a more flexible rescue fund to help eurozone countries afflicted by the debt crisis has been welcomed by the Department of Finance.

RTÉ News reports that a spokesman for the Minister for Finance Michael Noonnan has welcomed a joint-statement  from the ministers of the 17 countries in the euro that appeared to offer hope of Ireland finally getting a lower interest rate on its European Union/International Monetary Fund bailout.

A meeting of the eurozone finance ministers was aimed at easing the worries that the economic troubles that have hit Ireland, Greece and Portugal would not spread to Italy which has become the new concern amid a spiralling debt crisis.

Spain’s economic situation is also causing some concern amongst EU leaders.

Borrowing costs for Italy reached as high as 5.7 per cent yesterday whilst the same borrowing costs for Spain were at 6 per cent, the highest level since the creation of the euro.

After 12 hours of what the Guardian reports were “fraught negotiations”, the ministers said they would adopt further measures to improve the chances of avoiding a “contagion risk”.

These will include “enhancing the flexibility and scope” of the European Financial Stability Fund, the €440 billion bailout fund which eurozone member states contribute to. This could lead to reductions in Ireland’s debt level, RTÉ explains.

The chairman of the Euro Group Jean-Claude Juncker also confirmed in a press conference after the meeting that a lower interest rate would be agreed for all bailout countries but did not specify by how much.

Meanwhile, no final decision was reached on how much banks and other financial institutions should contribute to a second rescue package for Greece, the worst affected eurozone member.

The new head of the IMF Christine Lagarde has said her organisation was not ready to discuss the  terms for a second Greek bailout, BBC News reports.