€8bn in bailout loans to be repaid early under Govt plans

The Government is planning to repay €8 billion in loans received during the financial crisis ahead of schedule.

The proposed repayments relate to loans provided under the European Financial Stabilisation Mechanism (EFSM) as part of the country's EU-IMF bailout programme.

Tánaiste and Minister for Finance Simon Harris brought a memo to the Cabinet this week, which will allow the State to make early repayments on the State's loans, in a move that could save the taxpayer an estimated €90m.

Ireland originally borrowed €22.5 billion under the EFSM, with €15.3 billion currently outstanding.

The exact details of the loan agreement will be announced in the coming days following consultation at both a domestic and EU level.

Ireland's national debt stood at €220 billion as of last month, according to the body which manages the country's borrowings, the National Treasury Management Agency.

Speaking on Today with Claire Brock, Minister Harris said it would be up to the NTMA to decide if the €8 billion repayment would be used to reduce the national debt.

It is expected the Irish Government will consult with the European Commission before proceeding with the plan to pay off the €8 billion of bailout borrowings.

It is expected the payment will be made before the end of the year.

In addition the money owed to the ESFM there is also a further €18.4 billion owed in debt accrued during the bailout, according to the NTMA website.