Early debt payback to impact on the Budget

The expected savings of up to €3bn in interest repayments from repaying the IMF early will have an impact on the Budget for next year, Finance Minister Michael Noonan has said.

This follows agreement in principle by the euro-zone finance ministers and the EU institutions and the IMF to waive the terms of the legal contract Ireland signed for €67.5bn rescue loans.

However, Ireland will have to wait at least four weeks to finally learn if it can repay the IMF loan early, as the German parliament will vote on the issue on October 10, and Sweden needs to elect a new government this weekend.