EU Finance Ministers give green light to extension of €40bn in bailout loans
EU finance ministers have given the green light for Ireland to delay repayment on our EU/IMF/ECB €40bn bailout loans.
The EU-IMF bailout team will now work out a proposal with the “best possible option” for Ireland and Portugal’s repayment schedule to be eased.
The aim is to push out the repayment dates on the emergency loans that Europe gave Ireland as part of its rescue package in 2010.
EU finance minister discussed whether they would be ready “in principle to consider an adjustment of the maturities on the EFSF and EFSM loans” to Ireland and Portugal.
The measure is aimed at smoothing the “debt redemption profiles of both countries”.
“Both programmes are on track and performing well despite challenging macro-economic circumstances.
EU Finance Ministers commended the authorities’ strong commitment to their respective adjustment programmes, which have already been successful in addressing previously accumulated imbalances.
“Both countries have taken successful steps to re-enter the markets. In both meetings views were exchanged on how best to support their efforts to regain full market access and successfully exit their programmes,” a statement from the European Union finance ministers said.
Negotiations were headed up by Finance Minister Michael Noonan.