asked the Minister for Finance if he will state (a) the total amount of the American Loan Counterpart Fund at present, and (b) whether the counterpart fund is invested in any securities, and, if so, at what per cent.
Ceisteanna—Questions. Oral Answers. - American Loan Counterpart Fund.
The amount deposited in the Central Bank as the counterpart of American Loan Aid was £28,473,185 as at 30th June, 1950. In accordance with Section 4 of the Central Fund Act, 1949, transfers from the account in the Central Bank to the American Loan Counterpart Fund are made, from time to time, for the purpose of investing these resources in Government or Government-guaranteed securities. As at 30th June, 1950, £10,000,000 had been transferred to the fund and had been invested as to £10,000,000 in Ways and Means Advances to the Exchequer earning interest at 1½ per cent. per annum and as to £100,000 in State-guaranteed mortgage stock of the Agricultural Credit Corporation earning interest at 3 per cent. per annum.
asked the Minister for Finance if it is permitted under the terms of the loan agreement with the American Government to use counterpart funds for the financing of house building schemes by local authorities; and, if so, if he will state on what terms the money could be made available to local authorities.
There is no restriction under the American loan agreements on the use of the Irish currency counterpart of loan receipts. The only provision bearing on this matter is the general undertaking assumed by the Government in the Economic Co-operation Agreement with the United States of America to maintain internal financial stability.
The American Loan Counterpart Fund, as well as being the source of finance for certain development schemes, including the land rehabilitation project, is being drawn upon temporarily to provide for State capital expenditure generally, the principal item of which is advances to the Local Loans Fund for local authority housing.
It is necessary, however, that adequate long-term finance for housing should be obtained from sources other than the American Loan Counterpart Fund, particularly from savings, as the specific commitments of the fund exclude the possibility of using it other than as a temporary and ancillary source of housing finance.
Advances for local authority housing are being made available at an effective interest rate of 2½ per cent.