Business

Monday 20 January 2020

Irish borrowings slashed by €6bn in 2015

Finance Minister Michael Noonan
Finance Minister Michael Noonan

Ailish O'Hora

THE Government received a boost today and will be allowed to borrow €6.2bn less than previously expected in 2015 to fund the economy, new figures reveal.

The new figures published tonight are a result of the bailout loan extensions agreed at last April’s Ecofin meeting of European finance ministers.

In 2015, the Government will have to borrow €4.4bn instead of €10.6bn pending approval of the plans at the next Ecofin meeting in June.

This will make it easier for National Treasury Management Agency to borrow in bond markets to fund the economy as we leave the EU/IMF/ECB bailout programme.

Ireland is scheduled to leave the bailout programme at the end of this year.

The deal will mean reductions in borrowing of over €20bn between 2015 and 2022.

However, it is expected that the Government will still have to take over €3bn out of the budget in 2014 and over €2bn in budget 2015 in a bid to fix our finances.

The reductions are separate to ongoing discussion being headed up by Finance Minister Michael Noonan and Europe over a restructuring of billions in legacy bank debt when financial institutions were bailed out during the crisis.

Finance Minister Michael Noonan said the new figures showed that discussions on Ireland’s borrowing needs are progressing.

“I am very pleased that the amendment to the maturities on Ireland’s EFSF/EFSM loans (bailout funds) is now progressing,” he said.

These proposals have now been circulated to EU member states and have also been laid before the Houses of the Oireachtas.

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