Ireland is to repay billions of euro of bailout loans early in order to avoid €150 million of interest.

International Monetary Fund (IMF) chief Christine Legarde today gave the green light to a Government plan to repay €4.5 billion earlier than planned.

Sweden will accept €600 million and Denmark €400 million.

The state borrowed a total of €67.5 billion in 2010 to avoid bankruptcy, but the €3.8 billion borrowed from the UK will not be paid back early.

Minister Paschal Donohoe says it would be too expensive to break the UK’s terms: