Extended maturities for EU bailout loans

Scofflaw

A plan to extend the deadline for Ireland to repay its bailout loans to the EU will change the repayment dates for €20bn of loans, according to Minister for Finance Michael Noonan.

The deal would reduce the amount Ireland would have to borrow from the markets between 2015 and 2022 by €20bn.

The proposal to amend the repayment dates has been circulated to EU member states and was laid before the Oireachtas this afternoon.

It is expected there will be final approval at the informal meeting of EU finance ministers in June.

http://www.rte.ie/news/business/2013/0529/453439-bailout-repayment-loans/

I'm sure this will produce the inevitable argument that an extension of maturities will result in greater interest payments, but note that we would have borrowed from the markets - at higher interest rates - to make the repayments.

As far as I can tell from the minimally informative RTE coverage, this applies to EU rather than IMF loans - possibly the €22.5bn in EFSM loans specifically.

cordially,
Scofflaw

antoobrien

Scofflaw wrote: »

As far as I can tell from the minimally informative RTE coverage, this applies to EU rather than IMF loans - possibly the €22.5bn in ESM loans specifically.

There's no mention of the IMF or any of the bi-lateral loans (UK, Sweden & Denmark), so it's almost certainly only the EFSF/EFSM loans. Have they been taken over by the ESM yet (don't remember hearing that it has happened)?

Cody Pomeray

The Department of Finance is being equally sparse in its commentary. The only profile they give is an example of 2015, whereby refinancing will be reduced from €10.6bn to €4.4bn.

That's enormously significant, I'm surprised it isn't receiving wider attention in the news. Not seeing anything in the online section of the IT, even though it came to the Dáil yesterday evening.

antoobrien wrote: »

Have they been taken over by the ESM yet (don't remember hearing that it has happened)?

the EFSF will retain management of the issues outstanding for Ireland and other program countries. Or that was the plan.. might change now.

Scofflaw

antoobrien wrote: »

There's no mention of the IMF or any of the bi-lateral loans (UK, Sweden & Denmark), so it's almost certainly only the EFSF/EFSM loans. Have they been taken over by the ESM yet (don't remember hearing that it has happened)?

Sorry, that should read "EFSM", not "ESM".

acronymically,
Scofflaw

antoobrien

Cody Pomeray wrote: »

The Department of Finance is being equally sparse in its commentary. The only profile they give is an example of 2015, whereby refinancing will be reduced from €10.6bn to €4.4bn.

The commentary is detailed enough, in that it states that the maturities for the loans due between 2015 & 2022 are covered by this proposal. After that it's just a matter of knowing what loans/bonds are due and when:
Bailout
other debt

In fact there's a page on the NTMA that deals with what is maturing when.

Here's a quick summary (€m):
Year|Total|Bonds|Bailout|
2015|10,600|

3,689

|

6,911

|
2016|16,360|10,191 |

6,169

|
2017|

9,660

|

6,413

|

3,248

|
2018|16,515|

9,287

|

7,228

|
2019|20,530|14,514 |

6,016

|
2020|25,912|20,903 |

5,008

|
2021|

5,749

|

30

|

5,719

|
2022|

3,870

|

31

|

3,838

|


Graphical representation of maturity profile as of April