Ireland to consider early repayment of €8bn EFSM loans

Tánaiste Simon Harris announced that the government will seek to give Ireland’s debt agency the option to repay €8 billion of loans received under the 2010 international bailout ahead of schedule.

The proposed early repayment concerns loans provided through the European Financial Stabilisation Mechanism (EFSM). Ireland currently has €15.3 billion of EFSM debt outstanding, which is just under half of the total debt owed to European institutions.

Harris told Newstalk radio that the move would only be pursued if it saves taxpayers money on interest payments, adding that the proposal was presented to cabinet this week.

Ireland repaid its final IMF loan nine years ago, and a surge in corporate tax revenue from US multinationals has produced large budget surpluses for four consecutive years, reducing the need for further borrowing.

At the end of September, the debt agency reported a cash and liquid asset balance of €28 billion. An early repayment, expected by year‑end after consultation with the European Commission, would reduce the national debt, which stood at €210 billion or 63 % of modified gross national income at the end of 2025.

Source: Irish Examiner. Photo: Atlantic Ambience / Pexels.