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Bilateral Loan to Ireland

Volume 675: debated on Wednesday 29 April 2020

I would like to update Parliament on the loan to Ireland.

In December 2010, the UK agreed to provide a bilateral loan of £3.2 billion as part of a €67.5 billion international assistance package for Ireland. The loan was disbursed in eight tranches, and the final tranche was drawn down on 26 September 2013. Ireland has made interest payments on the loan every six months since the first disbursement.

HM Treasury has today provided a further report to Parliament in relation to the loan as required under the Loans to Ireland Act 2010. The report relates to the period from 1 October 2019 to 31 March 2020. It reports fully on the one principal repayment and one regular interest payment received by HM Treasury during this period, and sets out details of future payments up to the final repayment on 26 March 2021.

HM Treasury received a further payment on 20 April 2020, after the scope of the report published today. In line with the agreed repayment schedule, HM Treasury received a total payment of £406,672,904.07 from Ireland. This comprises the repayment of £403,370,000 in principal and £3,302,904.07 in accrued interest. The total outstanding principal on the loan is £1,613,480,000, and the Government continue to expect the loan to be repaid in full and on time.

A written ministerial statement on the previous statutory report regarding the loan to Ireland was issued to Parliament on 3 October 2019, w, column 62WS.