The Euro Area Heads of State or Government (HOSG) agreed on 21 July 2011 to lengthen the maturity of future EFSF loans from 7.5 years to a minimum of 15 years and up to 30 years. The EFSF has since raised a mixture of long and short-term funds for Ireland including a 10 year loan of €3 billion. The weighted average original maturity of Ireland's €10 billion EFSF loans to date is 5.8 years. Short-term loans issued to date will be converted to long-term loans when market circumstances are appropriate, thereby extending the average life. In October 2011, the EU Council of Ministers approved an EU Commission proposal to increase the maturity of individual tranches of lending to Ireland and Portugal from a minimum of 15 years to up to 30 years. In addition, EU Finance Ministers agreed that the average original maturity of the EFSM loans to these countries will be extended from 7.5 years to up to 12.5 years. Since this declaration the EFSM has issued Ireland with a thirty year loan of €1.5 billion. The weighted average original maturity of Ireland's €15.4 billion EFSM loans to date is currently 10.2 years.
The EFSF and EFSM fund their disbursements to Ireland by selling bonds and bills in the international capital markets. Notwithstanding the decision to extend the maturity of these loans, the terms and conditions of the individual disbursements to Ireland are, therefore, heavily dependent on the market conditions at the time of issue.