Repaying IMF early could save €375m

Ireland could make an annual saving of €375m after confirmation from the International Monetary Fund (IMF) that loans provided as part of the troika package can be repaid early without incurring any additional fees.

The plan, originally mooted by Finance Minister Michael Noonan last month, would see the government repay almost €18bn in debt, thus reducing the total amount below the threshold at which costly surcharges are applied.

Speaking last month, Mr Noonan said that by repaying €15bn of the more than €22bn the government owes to the IMF, the country could save up to €375m a year.