Early IMF repayment could save €2.1bn

The early repayment of IMF loans would save the Government €2.1bn in interest payments and put the country in a much more sustainable fiscal position, according to the troika.

Finance Minister Michael Noonan, has been lobbying Ireland’s EU counterparts over the past few months to get permission to repay early €18.3bn of the €22.5bn of IMF loans as part of the bailout programme in November 2010.

Under the terms of the original loan agreement, all EU countries that contributed to the €67.5bn bailout package have the right to be repaid at the same time as the IMF. Mr Noonan secured final agreement at the meeting of EU finance ministers in Milan two weeks ago.