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

Ireland completed the 10th quarterly review of its International Monetary Fund and European Union programme of financial assistance on 9 May 2013, following which, the utilisation period for the final instalment of the UK bilateral loan began. HM Treasury and Ireland mutually agreed that the utilisation period would conclude on 30 September 2013.

Upon request, the Treasury disbursed the last instalment of £403.37 million on 26 September 2013, with a maturity date of 26 March 2021.

The interest rate charged on the loan is calculated as set out in the loan agreement as the UK’s cost of funds plus a service fee of 18 basis points per annum, creating an effective per annum interest rate on this tranche of the loan of 2.740%. The UK more than covers its cost of funds.

HM Treasury has today provided a further report to Parliament in relation to Irish loans as required under the Loans to Ireland Act 2010. The report relates to the period from 1 April 2013 to 30 September 2013.

A written ministerial statement on the previous statutory report on the loan to Ireland was issued to Parliament on the 25 April 2013, Hansard, column 60WS.

The Treasury will provide a further report to Parliament in relation to the bilateral loan as required under the Loans to Ireland Act 2010 as soon as is practicable following the end of the next reporting period, which ends on 31 March 2014.

The Government believe that it is in our national interest that the Irish economy is successful and its banking system is stable. The Government continue to support Ireland’s efforts to improve its economic situation.