Eurozone gives Ireland greenlight to repay bailout loans early
(MILAN) - Eurozone ministers on Friday backed a push by Ireland to repay part of its 85-billion-euro bailout loans early, marking a turning point in the debt crisis aftermath.
"There was broad political support in the Eurogroup," said Dutch finance minister and Eurogroup chief Jeroen Dijsselbloem at a news conference after ministers met for talks on a broad range of issues in Milan.
Debt-plagued Ireland became the first of the bailed-out eurozone nations to exit an EU-IMF rescue programme last December -- three years after seeking help to keep its economy from collapsing after the shock failure of major Irish lenders.
Specifically, Ireland hopes to repay 18-billion euros ($23 billion) owed to the International Monetary Fund, convinced it could pay much lower borrowing prices on the financial markets.
Early repayment requires approval of all bailout creditors and the matter will be put to the full 28-EU members meeting in Milan Saturday, who also have a say on the issue.
In some cases, as in Germany, parliamentary approval is also needed, though EU officials expect little opposition.
"I welcome the Irish initiative for the simple reason that it strengthens the debt sustainability of Ireland," said the head of the euro rescue fund EFSF, Klaus Regling, adding the matter would also be of benefit to the lenders.
The Irish government believes it could save up to 400 million euros a year through loan restructuring and will use the cash to help meet its EU deficit targets.