Irish make final repayment on UK emergency 'bailout' loan

Image source, Reuters

  • Author, John Campbell
  • Role, 鶹Լ 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 £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 €22.5bn (£19.25bn) International Monetary Fund (IMF) loan in 2017 as well as smaller loans from Sweden and Denmark.

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