Ireland close to deal on repaying IMF loans early

Ireland moved close to an accord on repaying IMF bailout loans early, with Sweden set to become the last EU nation to agree.

Ireland close to deal on repaying IMF loans early

Sweden’s parliament’s finance committee unanimously proposed to allow Ireland to refinance IMF funds without triggering similar payments on its lower-cost European loans.

Sweden is the last EU approval needed, and a vote by parliament is scheduled for next Wednesday .

“This is a positive development in that it removes the final technical hurdle to Ireland repaying its IMF borrowings,” said Philip O’Sullivan, an economist at Investec.

Finance Minister Michael Noonan secured a provisional accord from EU counterparts in September to repay most of the country’s €22.5bn of IMF loans early, pending consent from individual nations. Ireland may save as much as €2.1bn by refinancing most of its IMF loans by selling bonds.

The IMF loans carried an effective 4.99% interest rate at the end of March, 1.9 percentage points more than its most expensive EU funds, according to the Department of Finance.

Enda Kenny said last week that the Government is set to accelerate its plan to refinance IMF loans after it sold €3.75bn of bonds the same day. The NTMA sold the security to yield 2.487%, a “historical low” for a 15-year issuance by the State.

Mr Kenny said the State may repay an initial €10bn of the IMF loans, having first planned a €6bn repayment.

More in this section

Budget 2022 Logo

What impact will this  year's budget have on you and your business.

The Business Hub

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
Puzzles logo

Puzzles hub

Visit our brain gym where you will find simple and cryptic crosswords, sudoku puzzles and much more. Updated at midnight every day. PS ... We would love to hear your feedback on the section right HERE.

News Wrap

A lunchtime summary of content highlights on the Irish Examiner website. Delivered at 1pm each day.

Sign up

Our Covid-free newsletter brings together some of the best bits from, as chosen by our editor, direct to your inbox every Monday.

Sign up