Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The question of early repayment of any one lender cannot be treated in isolation from other lenders and market expectations for when programme loans are due to be repaid. The early repayment of IMF loans would trigger automatic mandatory proportionate early repayments of EFSF and EFSM loans, as well as the bilateral loans with the United Kingdom, Kingdom of Sweden and Kingdom of Denmark. This would also apply in respect of the early repayment of the loans from any of the other programme funding partners. The provisions in question are included in the loan agreements with the EFSF, EFSM and the UK, Sweden and Denmark.

There have been no discussions on early repayment of our programme loans with the troika. As part of an ongoing process of enhancing our debt sustainability, technical issues are considered as a matter of course. This review process can include contact with other authorities to assess that their understanding of the position on the loans is the same as ours. That is no more than a prudent checking of the factual position. It does not represent a decision or a proposal of any kind.

The impact of any early repayment of any of our loans, as set out in the question, on our bond yields would need to be carefully considered were such a possibility to arise. Should it become a possibility, I would take the advice of the NTMA on this matter and if it was to be pursued, the agreement of the other lenders would, of course, be required. I should also point out that, as the IMF loans have a shorter average maturity, they will be repaid considerably in advance of the EFSF and EFSM loans for which we negotiated maturity extensions.

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