Brexit LIVE: Iain Duncan Smith warns UK will face £160billion EU loans bill after Brexit

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Along with the stated £40billion divorce payment to the EU, Sir Iain has declared the UK will still be locked into the loans issued by the European Investment Bank and the European Financial Stability Mechanism in the future. Both agencies have paid out billions across the EU 27 and the UK’s own repayment of the share will be 12 percent. Due to this, the UK’s payment could reach as high £160billion but could raise beyond that due to the coronavirus outbreak. Due to this, the former Tory leader demanded the agreement must be reopened or risk being locked into Europe’s debt post-Brexit. 

He told The Sun: “We would basically be boot-strapped to Europe for the foreseeable future.

“If people thought we were only paying £39billion they can forget it. We’ve got a potential bill of £160billion and Covid could raise that massively.

“This would lock us into the EU’s debt mountain.”

The UK’s chief negotiator, David Frost and his counterpart, Michel Barnier will meet on August 17 to discuss Brexit talks. 

A further two rounds of meeting will take place on September 7-11 and September 28-October in pursuit of a deal. 

7.25am update: UK set to pay huge EU loan repayments 

Under the Prime Minister’s withdrawal agreement, the UK will be tied into the EU’s loans sent to the 27 member states. 

Although, the UK will have left the bloc, former Tory leader Sir Iain Duncan Smith warned the UK could be forced to pay £160million in loan repayments. 

He told The Sun: “We would basically be boot-strapped to Europe for the foreseeable future.

“If people thought we were only paying £39billion they can forget it. We’ve got a potential bill of £160billion and Covid could raise that massively.

“This would lock us into the EU’s debt mountain.”

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