The Government has welcomed the first disbursement of €100 million funds from Denmark following the signature of a €400 bilateral loan agreement with Denmark as part of the EU-IMF bailout programme
Minister for Finance Michael Noonan, who is currently in Copenhagen attending the informal meeting of European finance ministers as part of the Danish presidency of the EU, said the loan represented a signficant contribution from Denmark towards Ireland's recovery.
The bilateral loan agreement is for a total of €400 million and is being made available to Ireland in four tranches of €100 million spread over 2012 and 2013.
The variable interest rate which will apply to this loan is 3 month Euripi or the cost of funds, plus 1 percentage point and each disbursement will mature after 7.5 years
The provision of the loan from Denmark is subject to Ireland’s continued compliance with the terms and conditions of the Programme of Financial Support agreed with the troika.
The loan is part of the €67.5 billion Programme of Financial Support provided to Ireland by Member States of the European Union through the European Financial Stability Facility (EFSF) and the European Financial Stabilisation Mechanism; bilateral loans from the United Kingdom, Sweden and Denmark; and the International Monetary Fund’s (IMF) Extended Fund Facility (EFF).
