Government considering early repayment of €8bn in post-crash loans

The Government is considering the early repayment of about €8 billion in loans secured in the aftermath of the economic crash.It has been calculated that any such move could generate savings of €90 million to the exchequer. On Wednesday the Cabinet is understood to have agreed to the option of repaying loans earlier than scheduled dates over the next decade. However, no final decision has yet been taken, and will ultimately depend on whether it is considered to be financially beneficial at the time. READ MOREThe plan would involve the repayment of loans either partially or in full of €8 billion originally secured under the European Financial Stabilisation Mechanism (EFSM) next year and in 2028. The EFSM provided financial assistance, from the European Commission, to Ireland and Portugal between 2011 and 2014. The money was conditional on implementation of economic reforms. Short-term loans were also provided to Greece under the arrangement. Ireland holds just over €15 billion in EFSM loans. Should it decide to go ahead with the move, it is understood the Government would issue new debt to pay them off. The plan as envisaged would see repayments, either in whole or in part, of €3 billion due to mature in 2032, €2 billion scheduled to be paid back in 2035 and €3 billion due in 2036. The Government would not repay the entire amount at one time.