Early repayment: Minister for Finance Paschal Donohoe confirms that the state will re-pay €5.5bn back to IMF early – TheLiberal.ie – Our News, Your Views

Early repayment: Minister for Finance Paschal Donohoe confirms that the state will re-pay €5.5bn back to IMF early




The Minister for Finance Paschal Donohoe has confirmed that the state will re-pay almost €5.5 billion to other countries a lot earlier than expected as part of its 2010 EU-IMF bailout.

The early repayments which will reportedly save the Government around €150m in the long run comes as the Government have decided to take advantage of current interest rates which are more favourable now than in the future.

Speaking about the Government’s plan Minister Donohoe revealed that €4.5 billion of the funds will be immediately payed to International Monetary Fund loan. 

The remaining €1bn will be given to both both Sweden and Denmark who are owed €600m and €400m respectively.

Mr Donohoe also claimed the decision to re-pay the loans early would improve the country’s debt sustainability, provide liquidity benefits and increase the ECB’s purchase capacity for Irish bonds.

He added: “These early repayments – in particular the early IMF repayment – will mark another very significant milestone for Ireland as we move forward, signalling the strength of our economy and sovereign funding position generally.”

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