European authorities have given Ireland the green light to fast-track the repayment of €5.5 billion in outstanding loans from the International Monetary Fund (IMF), Denmark and Sweden.
The European Financial Stability Fund (EFSF) – the euro zone’s crisis-era bailout fund – approved the plan on Monday.
It paves the way for Ireland to repay the remaining €4.5 billion on its IMF bailout loan and another €1 billion in bilateral loans from Sweden and Denmark.
Under the terms of Ireland’s €67.5 bailout international bailout in 2010, the EFSF, a forerunner to the current European Stability Mechanism (ESM), needs to waive its right to be proportionally repaid early before other creditors can be paid.
Paying off the higher-cost IMF loans early is expected to save the State around €150 million in debt servicing costs.