Ireland pays €186m interest payments to Britain

Britain has received £148m (€186m) in interest payments from Ireland following a crisis loan in 2010.

A total of £3.2bn was lent by Britain to Ireland as part of an international rescue package.

A treasury report said it would be March 2021 before the bilateral loan’s term is up. The final tranche of money was paid to Ireland a year ago.

The document said: “The [British] government agreed to provide a bilateral loan to Ireland because it is in the UK’s national interest that Ireland has a successful economy and a stable banking system.

“The links between our financial systems, particularly in Northern Ireland, mean that there was a strong economic case to provide financial assistance to Ireland.

“By being part of the international financial package, the UK indirectly supported the very many businesses across the UK that trade with Ireland.”

The loan was made at the same time as a bailout by the European Commission, IMF, and ECB. At the time, Ireland accounted for 5% of the UK’s total exports and two-fifths of the North’s exports.

In 2012, UK chancellor George Osborne reduced the rate of interest on the loan in line with eurozone lenders. The amount outstanding is £3.2bn.