The UK bilateral loan provided as part of the EU-IMF Programme was drawn down in eight equal tranches of £403 million over the period October 2011 to September 2013. The total UK bilateral loan outstanding is £3.23 billon.
This is a fixed rate loan. The weighted average interest rate, including service fees, on the aggregate UK loan facility is 2.6%. Interest is paid semi-annually, in June and December.
The first tranche is due to be repaid in April. The table following provides further information.
Loan Tranche
|
Amount Maturing £m
|
Month/Year of Maturity
|
1
|
403
|
April 2019
|
2
|
403
|
July 2019
|
3
|
403
|
September 2019
|
4
|
403
|
February 2020
|
5
|
403
|
April 2020
|
6
|
403
|
September 2020
|
7
|
403
|
December 2020
|
8
|
403
|
March 2021
|
Total
|
3,227
|
-
|
The Exchequer is well positioned to fund these loan maturities. It had over €15 billion in cash at the end of 2018 and the NTMA has already raised €4 billion earlier this month through the issue of a new ten year benchmark bond.
I do not expect Brexit to have any impact on the repayment of the UK bilateral loan.
The currency exposure has been hedged by the NTMA in its management of the National Debt.