The European Investment Bank (EIB) has expressed confidence that a €115 million loan advanced to develop Cork Airport would be repaid despite plans to break up Aer Rianta.

EIB vice-president Mr Michael Tutty said that, whatever happened at Aer Rianta, he was confident the loan would be repaid. He said he met the Minister for Transport, Mr Brennan, and received assurances on the issue.

Mr Tutty said if the break-up did not go ahead, the Aer Rianta group would be responsible for repayments. However, he said from his understanding of Mr Brennan's proposals, the debt of Cork airport would transfer to Dublin airport.

Mr Tutty said he was happy that, whatever structure emerged, those who had provided loans would be taken care of.

"It is the same for bond holders. We will have to be accommodated in whatever structure emerges," he said.

He said the EIB board decided to approve the loan even though it was aware of Mr Brennan's plans.

Welcoming the loan agreement, Aer Rianta chairman Mr Noel Hanlon said: "This is a significant and cost-effective source of capital. It represents a strong vote of confidence by the EIB in the quality and value of the facilities under construction and a recognition of the importance of the airport to the economy of Cork and the wider Munster region."

Mr Tutty said: "EIB has also reflected the need for rapid improvements in facilities at Cork by providing funds under the Accelerated Finance Initiative, which is designed to bring forward important infrastructure investments across the EU. The increased airport capacity will generate economic benefits by accommodating future traffic growth and relieving current congestion."

The EIB was set up in 1958 and is owned by the EU member-states.