Noonan plans to pay IMF loans off early
The government may attempt to pay off Ireland's IMF loans early as part of a debt deal from European leaders.
reports today that Finance Minister Michael Noonan hopes to take advantage of Ireland's low borrowing costs on the markets to discharge the older, more expensive, debt.
Under the terms of the bailout the Government is obliged to pay back the IMF and European lenders at the same time.
However, today it is being reported that EU approval for early repayment of the IMF portion of the debt may be sought.
Finance Minister Michael Noonan is to meet with his European counterparts next week.
The initiative could result in annual savings of €375m if Ireland can take advantage of low borrowing costs in the private markets and use the money to discharge the more onerous IMF debt.
A deal on early repayment could ease pressure on the coalition over its failure to hold Europe's leaders to its promise - now two years old - that it would compensate the Government for bailing out the banks.
