Sweden could lend Ireland up to one billion euros: minister

"We are prepared to consider a bilateral loan in addition to the programme decided on by the IMF and the EU," Borg told reporters in Stockholm.

"The possible Swedish loan (to Ireland) would resemble greatly the loans given to Iceland and Latvia" by Sweden, "with the amount ranging from five to 10 billion kronor," at an interest rate of around three percent, he said.

Sweden, a member of the European Union but not of the single currency eurozone, said late Sunday it would consider a loan to Ireland but did not specify the amount.

The Scandinavian country's public finances are among the healthiest in the European Union and the government is forecasting growth of almost five percent this year.

Britain said Monday it was considering a loan to Ireland of about seven billion pounds (8.0 billion euros, $11.2 billion) as part of an international rescue.

It will also lend to Ireland via the European Union-International Monetary Fund bailout.

The EU and IMF on Sunday received Ireland's request for a bailout estimated at up to 90 billion euros ($123 billion) to stabilise the country's debt-stricken banking system and restore its strained public finances.

"For an export-dependant country like Sweden, it is basically inevitable to help contribute to financial stability," Borg said Monday.

A Swedish loan to Ireland would nonetheless need broad approval in parliament, said Borg, adding that Prime Minister Fredrik Reinfeldt's centre-right minority government had therefore sought to shore up support from the leftwing opposition.

"I had good discussions" with the opposition over the weekend, he said.

Stockholm would expect a "credible but also socially responsible and fair" plan from Ireland in exchange for a potential loan, Borg said.

However, unlike demands from several other countries that Dublin raise its controversial 12.5 per cent corporation tax, among the lowest in Europe, the Swedish minister stressed it would be up to the Irish government to determine taxation levels.

If Portugal, which some experts say could be the next European country to ask for help, or Spain, with its budgetary woes, were to request a loan, "the bar might be a bit higher" before Sweden agreed to contribute, Borg said.

"We do not intend to automatically offer support," he said.