7-year loan extension ‘icing on the cake'

Business lobby groups have welcomed the decision to extend the maturities on the bailout loans by seven years, claiming it will ensure the country’s exit from the programme later this year.

Philip O’Sullivan, chief economist at NCB Stockbrokers, described the move as the “icing on the cake for Ireland, which will greatly enhance Ireland’s ability to make a successful return to the markets over the medium term”.

Ireland has roughly €21bn of its €35bn of EFSM/EFSF loans maturing over the next decade. These have now been extended by an average of seven years, which removes any funding cliff and boosts investor confidence in the country, said Mr O’Sullivan.