Under the EU/IMF Programme of Financial Support for Ireland, the external partners will provide loan funding of up to €67.5 billion subject to compliance with the conditionality set out in the Programme. The key objective is to restore confidence and return the economy to a path of sustained growth and to support job creation, with a view to Ireland regaining access to market funding at reasonable rates. The external funding is being sourced as follows:
European Union:
European Financial Stabilisation Mechanism — €22.5 billion
European Financial Stability Facility — €17.7 billion
International Monetary Fund (IMF) — €22.5 billion
Bilateral loans:
UK — €3.8 billion
Sweden — €0.6 billion
Denmark — €0.4 billion
Total External Funding — €67.5 billion.
The bilateral loan element of the EU-IMF programme of financial support is being provided by three EU Member States — the United Kingdom providing approximately €3.8 billion, Sweden €0.6 billion and Denmark €0.4 billion. All bilateral loans will be provided subject to the conditions of the Memorandum of Understanding agreed with the EU/ECB/IMF.
In relation to the Swedish loan facility, the technical discussions on all aspects of the loan facility have been completed. The draft agreement will now be subject to the Swedish approval process. While the final agreement on the interest rate to be charged is subject to this approval process, we expect it to reflect the reductions already agreed in respect of the EU funds.
At this point, as the agreement has yet to be finalised, no funds have been drawn down under the bilateral loan facility with Sweden. The Swedish bilateral loans will have the 7.5 year term initially envisaged for all programme loans i.e. each draw-down amount would be due to be repaid at the date falling 7.5 years after the date of the relevant disbursement.