Bilateral loan to Ireland under the Loans to Ireland Act 2010

Treasury written statement – made on 17th December 2020.

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Photo of John Glen John Glen Minister of State (Treasury) (City), The Economic Secretary to the Treasury

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 8 tranches. 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.

On 7 December, in line with the agreed repayment schedule, HM Treasury received a total payment of £407,852,313.75 from Ireland. This comprises the repayment of £403,370,000 in principal and £4,482,313.75 in accrued interest.

In October, as required under the Loans to Ireland Act 2010, HM Treasury provided the latest Statutory Report to Parliament covering the period from 1 April to 30 September 2020. The Report set out details of future payments up to the final repayment on 26 March 2021. The government continues to expect the loan to be repaid in full and on time. The next Statutory Report will cover the period from 1 October 2020 to 31 March 2021. HM Treasury will report fully on all repayments received during this period in the Report.