Ireland planning to repay €8 billion of EFSM loans early, RTE reports

Ireland is planning ​to repay €8 billion ($8.9 billion) ​in loans received ‌as part ​of its 2010 international bailout programme, national broadcaster RTE reported on Thursday, citing ‌a memo the finance minister brought to cabinet this week. The proposed repayments relate to loans provided under the European Financial Stabilisation Mechanism (EFSM), ‌RTE said. Ireland has €15.3 billion in EFSM debt outstanding, ‌just under half of the debt due to be repaid to European institutions.

Ireland repaid the last of its IMF loans ahead of schedule nine ⁠years ​ago. A surge ⁠in corporate tax revenue paid by US multinationals has transformed the country's ⁠public finances since then, leading to large budget surpluses in each ​of the last four years that have limited Ireland's borrowing ⁠needs.

The country's debt agency also had a cash and liquid asset balance ⁠of €28 ​billion at the end of September. The early repayment, which RTE said is expected to be made by ⁠year-end following consultation with the European Commission, would cut Ireland's national ⁠debt, which ⁠stood at €210 billion or 63% of modified gross national income at the end of 2025.

($1 = ‌0.8971 euros)