THE EUROZONE’S bailout fund has distributed €1.6 billion in bailout loans to Ireland today – money Ireland will not be asked to repay for nearly three decades.
The European Financial Stability Facility disbursed the loans to Ireland this lunchtime.
The funds were raised through the issue of bonds by the EFSF, which can borrow at a far lower interest rate than the Irish government.
This is because any funds raised by the EFSF are guaranteed by the individual member states – so that lenders can be virtually certain they will be repaid.
The funding is then passed onto the Irish government at no extra cost – with the government covering only the original interest rate, and no additional margin.
Today’s funding is separate to the €950 million disbursed by the IMF earlier today.
The EFSF cash is due for repayment in 29 years – making it the longest-lasting loan in Ireland’s bailout to date.
Ireland has now received €14.4 billion of the total €17.7 billion it can receive from the EFSF under the 2010 bailout deal.