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Dublin: 9 °C Friday 24 May, 2013

Eurozone ministers: We’ll change repayment date for Ireland’s bailout loans

The Department of Finance says the move will make it easier for Ireland to emerge from the bailout programme.

Michael Noonan speaks with Dutch finance minister Jeroen Dijsselbloem at the meeting in Brussels last night
Michael Noonan speaks with Dutch finance minister Jeroen Dijsselbloem at the meeting in Brussels last night
Image: AP Photo/Virginia Mayo

FINANCE MINISTERS FROM the Eurozone have agreed to change the repayment date for some of Ireland’s bailout loans.

In a statement issued in the early hours of this morning, the ministers said they had agreed in principle to change the length of time Ireland has to pay back the smaller chunk of its bailout loan from Europe – but said a final decision on extending the bigger loan would have to be made by the European Council’s financial group.

The change will make the loans cheaper overall for Ireland to pay back, and means Ireland will have to borrow less money.

A Department of Finance spokesperson told TheJournal.ie that the move was a positive development which will further enhance Ireland’s ability to emerge from the bailout programme.

The idea had first been publicly mooted in January when the Eurogroup said it would examine a possible extension to the maturities of Ireland and Portugal’s bailout loans.

Ireland had been pushing to extend the repayment period of the €17.7 billion it received from the European Financial Stability Facility (EFSF) – funded by the 17 Eurozone members –  and the €22.5 billion drawn down from the European Financial Stability Mechanism (EFSM), which is funded by the European Commission.

The agreement by the ministers covers the EFSF loan but the decision on the EFSM repayment date will be made by ECOFIN ministers when they next meet.

Ireland is due to pay back its first chunk of bailout money in 2015 when €5 billion falls due to the EFSM. A further €4.19 billion is due to be paid back to the EFSF in 2016.

The change to the repayment date will also apply to Portugal, which has been adhering to the conditions of its bailout programme.

Eurogroup ministers said they were determined to support the two countries efforts to “regain full market access and successfully exit their well-performing programmes, in the context of continued strong programme implementation and compliance”.

The agreement was reached in Brussels, where ministers met to agree a €10 billion bailout package for Cyprus in a bid to save the country from bankruptcy.

Read: Ireland sells first 10-year government bonds since before bailout >

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Comments (78 Comments)

  • S**t, just stepped on a razor sharp green shoot, a bamboo one. Those green shoots are dangerous!

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  • Ah that is so decent of the EU, we have longer to pay. Thanks so much lads, happy St. Patrick’s Day.

    I wonder though, did Mick Noonan ask them to consider a debt write down? Enda Kenny hasn’t at any stage, because apparently we Irish pay our way. That’s the honourable thing to do of course isn’t it.

    Yet, it still remains that little old Ireland here will remain shouldering the burden of 42% of the total cost of the European banking crisis, at a cost of close to €9,000 per person (Eurostat), far outweighing the contribution of any other EU State, despite the fact that the entire EU banking sector in some way, shape or form contributed to and was responsible for the Europe wide crisis.

    But we’re so very grateful of you to let us spread it out further lads to saddle future generations. Thanks again.

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    • Then figure have increase thanks to the FANTASTIC DEAL that was rushed through in the middle of the night while most of us slept. It is now I could be slightly off but I am close, we now have 55 % an it is somewhere near 14-15 thousand per capita.
      Great deal!

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    • John
      Hello! We haven’t met but in some respect I’m glad that is so because I don’t believe that I would like you. Most of the people in my circle are honest and trustworthy and the sort who enter into agreements which are always fully honoured. You probably don’t really meet many of these people because your views reflect the type of honour dodging that has got us into so much trouble in the past. You remember the eight hundred thousand bogus non resident bank accounts? Of course you do and the five hundred thousand fine citizens who haven’t yet paid the Household Charge which is a lawfully imposed tax on domestic dwellings.
      Well you see John if I was operating a business with customers like that It wouldn’t be long before my business would be bankrupt.
      These nice folks in Europe who lent us money when nobody else would will want their money back John and you want to shortchange them. John do you not see that our Government dont want to be seen operating in the shady dark alleyways that your ideas and attitudes come from.
      John we are a sovereign and a proud Nation. Don’t make us sound like people trying a shakedown that you would see on the fringe of a racetrack.

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    • @Peter , if I may , you are absolutely correct about honour ! Just one question Did Anglo Irish Bank act in an Honourable way when it extended the boom and therefore the number of victims of the bubble by organising the B and B loans , take the bonuses and dump what Michael Noonan has admitted was illicit debt on every worker in Ireland ?
      Did the multinational depositors who withdrew their funds and caused a run on our banks act with honour ?
      I hae my own opinion on this and I appreciate yours whichever way you look at it !

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    • @Peter Daly. Don’t assume that you know me, or indeed the type of individual that I am. But it seems assumptions are rife in your lengthy reply to my previous comment.

      I’m minded of the old adage, play the ball not the man. You seem to resort to insult and ridicule to make your argument.

      If I were to make assumptions based on your comment I would likely assume you’re a FG supporter/sympathiser blinded by party loyalty. But I don’t know you, so I won’t commit to such an assertion.

      Peter, the fact is that I am a hard working individual. I pay my taxes. I have paid my Household Property Charge and all other taxes that are lawfully due. So that is one assumption you can park away.

      Peter, I assume you’re in business as you refer to your customers. Tell me this. If I made an investment in your company and your company engaged in reckless business practices and your company subsequently became basically insolvent. Would you still expect that I should make a full return on my investment?

      While you ponder that. I am not endorsing that we not honour our lawful sovereign debts. But I am seeking fairness. It is not fair that a small nation such as ours be forced to take on the debts of failed industry, and indeed the debts of other European banks that contributed to the EU banking crisis. We have been made a scapegoat.

      Fairness is all I seek. And I ask that our Government seek write down of the banking debt created by private individuals, firms, banks and investors.

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    • Dermot
      My apologies for not coming back to you earlier but I was dealing with a business matter. Your attempt to link the behaviours of Companies with the manner in which the State just doesn’t wash with me and the decision about the consolidation of Banking debts into sovereign responsibility was democratically taken a long time ago and you should know that any write down of these sums will be seen by those outside the country as a default and the consequences on what I see as a fragile early recovery could just wither on the vine.
      Your referral to me as a businessman is quite correct and interests lie in the Pharmaceutical field and inward investment in Ireland. I also fully support the current actions of the Government as they have worked hard in the past two years to restore our reputation abroad and recover our sovereignty. I do know Dermot that any slip up in the next few months could be catastrophic for us so we need to support the present Government as they must be under enormous pressure.

      Reply
    • John
      You misunderstand me. I never accused you of it paying your lawful debts but you do belong to those chattering classes who don’t believe that the current way that things are being done by those who have lawful responsibility to those things are doing them the right way from the perspective of fairness. Well they are so busy I guess they key get some of those things wrong but on the other hand they have done so much against all the odds you could not be but impressed with their achievements.
      John lets give them support rather than harassing them and abusing them

      Reply
    • Peter I never referred to you as a businessman, but anywho ; Short answer and no disrespect to you personally : Tell that to the Cypriots ; I’m sure they are delighted with this Government’s tenure as President of the E.U.
      They got their devaluation and so will we ; It’s called evictions !
      Just note further point I was told never to trust anyone who lies to me!
      Again not referring to you but to the current political European System!

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    • A perfect display of blind party loyalty and denial of the truth, why do you bother to argue with him Dermot? It’s obvious he is determined to remain delusional. Have you not noticed that these die-hard fg supporters do not let truth or reality get in the way of a good sermon?

      Reply
  • Noonan wants to Extend out an illegal loan to save German banks.The corrupt EU make more money on interest from a ponzi loan schemes to various EU forced indebted nations . Cyprus bailout talks may fail due to heavy links with east european organised crime groups.Traitorous activity by Cowan,Lenihan et al do a midnight run to protect themselves and EU itself. FG/LAB continue the same ponzi scheme charade. German voters polls show 26% Germans want the German DMark back. Merkel in election year doesn’t look too happy with possible re election to take place in Italy and French budget cuts coming into problems. Spain’s illegal house evictions added to the mess that nobody in the national governments or EU hierarchy know what to do. UK population showing more willingness to leave the EU shows a crisis that appears to be growing.

    Reply
  • Yea!
    It’ll cost us less to borrow money to pay for the money we borrowed to pay for a few lads gambling addition.
    And we can do it for longer!
    The EU is a great craic!
    Why are we in it again?

    Reply
  • The terms the EU/IMF have imposed on Cyprus today are a disgrace. A levy on all depositors in banks, rather than forcing bondholders to take a hit. It doesn’t give me much hope that they’re going to give us more favourable terms in future.

    Reply
  • Its only going to get worse for us,

    If the powerhouse economies like Germany and France are seeing a decline and the brits heading for a triple dip recession, you really think a country that has no indigenous industries will be grand?

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  • Lol…….jee thanks EU for extending the loan period for money the Irish Citizen does not owe in first place, you truly are amazing. You could not make this stuff up, FU Noonan hows that ?

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  • Undefined extension of time on the smaller bail out loans but no indication on the larger loans. This is good news? Obviously, something I am missing.

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  • WE DO NOT OWE THIS MONEY !!! Dont ever forget that in the midst of all this propaganda…….I would ask the journal to do some investigating into what happened with our country the night Brian Lenihan and his crewe signed over our sovereignty under duress from the EU COMMISSION……it was unconstitutional what happened that night for sure…..

    Reply
    • God. That line is do boring. So wrong. So embarrassingly naive. And so overused on the Journal. The representatives of the Irish people signed up to the debt. It’s done. Get over it. Move on.

      Reply
    • why do you think the government didn’t appeal the Dunne ruling to the Supreme Court ? …………….. foreign agents wrapped in a tricolour is all the vast majority of T.D.’s are as far I am concerned in my opinion !

      Reply
    • Oooooh. Jim Corr much?

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    • @ Kevin Shaw .
      If hitler [ a democratically elected man ] signed the death warrant of 6 million jews – was that ok . He was the elcted rep of the German people – just tell the Jews – get over it !!.
      How many will die and suffer from this and previos govts corruption and obeying the Crimnals that run the planet .
      Does it matter if eg someone kils one person or a thouasand [ apart from the 999]- —–
      ————should they go to jail ??

      Reply
    • No. But it does lend culpability to the German people for his crimes. Which was my point. FF signed up to the debt (or more importantly allowed it to develop in the first place)…they were appointed by the people. So the people bear responsibility for the debt. As Germans bear a collective responsibility for the holocaust and paid a collective price for it.

      Reply
    • O'Reilly 16/03/13 #

      Godwins law never fails…

      Reply
    • Have a look at how hitler used propaganda to get people to think the way he wants them to.

      Now add years of technology advances to that imagine what hitler could have done had if he had the technology available to our eu dictators.

      Reply
    • And you think that’s ok Higgins… Oh i mean Kevin

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    • @ Kevin Shaw : re Fianna Fail , whom I dislike intently, and the debt could you please remind me of the voting patterns of the Labour and Fine Gael Partys with regard to the bank bailout ? I’m nearly sure Fine Gael voted for the bailout and Labour abstained ; which means they didn’t vote against it ….but as I said I’m fairly sure not certain ….. by the way in typical Irishman style – do you have a vote in Ireland ?

      Reply
  • it wouldent matter if noonan appeared on tv with christ almighty himself i still consider him a crook.that should be ran out of any involvement to do with the political running of our country

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    • Tell you what, Maurice. I’ll buy you a St. Patricks Day pint if you can in any way substantiate that Michael Noonan is crooked or corrupt. I don’t want to hear about a policy you didn’t like, a decision you don’t like or any mistakes you think he made. I would like to see your proof that he has engaged in any criminal activity ( as defined by Irish law, not you). If you can’t, you’re just another waffler and need to sit down and shut up. I’m waiting with bated breath. This should be good.

      Reply
    • Builderberg meeting Kevin. I believe you owe maurice a pint.

      Reply
  • Great way to start the morning by reading goverment propaganda by the journal.

    Reply
  • Nice to see the E.U. getting so “friendly” when they realise they have gone too far ! …of course they now know that they are too late – Ireland is leaving the E.U. or the E.U. is breaking up………. that’s all this is …too little too late ……..
    Bye bye Europe I would thannk you for the memories but they are mostly ones of a con-job called the Euro …..in my opinion !

    Reply
  • More progress. Good news. You get a sense things are finally starting to turn around….

    Reply
  • Its an Odious debt and therefore illegal in international law

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  • THERE’S ONLY ONE SOLUTION LADS, AFTER 5 YEARS OF WAITING FOR THE “LEADERS” TO SORT IT OUT, WE NEED A REVOLUTION NOW!!

    Reply
  • @O’Reilly – See SL’s comment.

    Reply

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