Belfast Telegraph

Ireland's delight at early payback of bailout loans

By Staff Reporters

The last of Ireland’s expensive IMF rescue loans are to be paid back early under Irish Government plans to cut the cost of the national debt.

It will mean the IMF becomes the first element of the Troika, which also included the European Commission and European Central Bank, to formally complete its role in the Irish bailout.

Taoiseach Leo Varadkar said it was a “landmark” for the Irish State.

“It’s 10 years since the financial crisis began.

“I think this is a very significant landmark that Ireland is able to pay off in full and early all of its loans to Sweden, Denmark and the International Monetary Fund.”

The remaining €4.5bn (£4bn) of IMF rescue loans and €600m (£551m) of bailout loans provided by Sweden and €400m (£367m) from Denmark accepted by Ireland as part of the 2010 rescue will be repaid under the proposals.

But Ireland’s Finance Minister Pascal Donohoe said a part of the bailout provided by the UK won’t be paid back earlier, because it would trigger a financial penalty.

But he added that “Brexit was not a factor in the decision that has been made”.

Repaying the loans early still has to be approved by all parties to the bailout, but that is expected to happen without complications.

The funds can be repaid with money borrowed on the markets and Irish State cash.

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