The Financial Times has today reported that EU authorities have approved Ireland’s plans to pay off the last of its crisis-era bailout loans from the International Monetary Fund early, in a move the government claims will save it around €150m in debt servicing costs.
According to the report, Ireland will repay the remaining €4.5bn IMF rescue cash given to the country during its 2011-2013 banking bailout and another €1bn in bilateral loans from Sweden and Denmark. Ireland has already paid back €18bn of its IMF debt.
The European Financial Stability Fund (EFSF) – the eurozone’s crisis-era bailout fund – approved the latest plan to pay off the creditors on Monday. Under the terms of the country’s €67.5bn international bailout, eurozone member states need to sign off on early payment plans and waive their right to be paid back early.
Speaking today, Managing Director of the European Stability Mechanism, Klaus Regling said, "These early repayments will lower Ireland’s debt service costs, improve its debt sustainability outlook and therefore send a positive signal to the markets."
Source: www.businessworld.ie
