The Loans to Ireland Act allowed for a bilateral loan of £3.2 billion to be paid to Ireland as part of a €67.5 billion international assistance package.
The Loans to Ireland Act was granted Royal Assent on 21 December 2010, and provided Parliamentary authorisation for a bilateral loan of £3.2 billion to be lent to Ireland. The government expects the loan to be repaid in full.
The government agreed to provide a bilateral loan to Ireland because it is in the UK’s national interest that Ireland has a successful economy and a stable banking system. The links between our financial systems, particularly in Northern Ireland, mean that there is a strong economic case to provide financial assistance to Ireland. By being part of the international financial package, the UK will indirectly support the very many businesses across the UK that trade with Ireland.
Advances under the UK’s loan agreement are conditional on the International Monetary Fund (IMF) and European Union being satisfied that Ireland is complying with the provisions of its financial assistance programme and is meeting the targets it sets out.
Under the terms of the Loans to Ireland Act 2010, the Treasury is required to report periodically on the bilateral loan, including on loan payments made, interest received and amounts outstanding.