State makes final payment on £ 3.2bn rescue loan from Britain
The state has finalized the payment of a bilateral loan of 3.2 billion pounds sterling (3.7 billion euros) from Great Britain which it obtained as part of the EU-IMF bailout program of 67.5 billion euros at the height of the financial crisis.
The Republic had already repaid 22.5 billion euros to the International Monetary Fund (IMF) for a loan facility, which had been paid earlier than expected. It also made full prepayments of loans from Sweden and Denmark of € 6 million and € 4 million respectively at the end of 2017.
Some 40.9 billion euros are still due under the bailout program, but 18.4 billion euros are due to the European Financial Stability Fund and 22.5 billion to the European Financial Stabilization Mechanism (MESF).
The state accepted the EU-IMF bailout program of 67.5 billion euros at the end of 2010 following the banking crisis which led the state to pay 41.7 billion euros to bail out Irish banks.
“I welcome the completion of the repayment of the UK bilateral loan today. This repayment marks the completion of another step in our journey since the end of the EU-IMF financial assistance program in December 2013, ”said Finance Minister Paschal Donohoe.
The UK loan was disbursed in eight equal installments of £ 403 million over the period October 2011 to September 2013. Each tranche was repayable 7.5 years after disbursement and the last tranche has been repaid today ‘hui.
The state did not seek to prepay the UK loan as it was a fixed rate deal, meaning there would have been a break-up fee had it done so.
Loans made under the bailout included 22.5 billion euros from the IMF, 22.5 billion euros from the FESM and 22.5 billion euros from the EFSF, which included the 4.8 billion euros. euros in bilateral loans from the UK, Sweden and Denmark.