Irish make final repayment on UK emergency 'bailout' loan

Image source, Reuters

  • Author, John Campbell
  • Role, 91热爆 News NI Economics & Business Editor

The Irish government has repaid the emergency loan it got from the UK during the last financial crisis.

It borrowed 拢3.23bn as part its international bailout in 2010.

The loan was drawn down in eight portions between 2011 and 2013, each to be repaid after seven and a half years.

Finance Minister Paschal Donohoe welcomed the final repayment, saying it marked "another step along our journey since exiting the EU-IMF financial assistance programme in December 2013".

The Irish government had considered repaying the loan early but that would have incurred a penalty charge.

At the time the loan was made, Chancellor George Osborne said it was in the UK's interest to join a rescue package for the Irish economy.

He said Ireland was a "friend in need" and a major trading partner with a banking sector closely linked to the UK's.

The UK loans were part of a bigger bailout package, which Ireland is continuing to pay off.

It repaid the last of a 鈧22.5bn (拢19.25bn) International Monetary Fund (IMF) loan in 2017 as well as smaller loans from Sweden and Denmark.

Its outstanding balance of around 鈧41bn (拢35bn) is owed to two EU bailout schemes.