asked the Minister for Finance the likely effect of the recent currency developments in Europe and the effect on remuneration and repayments of foreign loans raised by the Irish Government and State bodies.
Ceisteanna—Questions. Oral Answers. - Foreign Loans.
22.
Only those loans which are repayable in Deutsche Marks are affected and as the Deutsche Mark is now being allowed to float freely it is not possible to foretell what the effect on the cost of repayment and of interest payments will be. At present the floating rate of exchange with Irish currency is approximately 3 per cent above the previous fixed rate.
Can the Minister state either what the cost would be if it remained at 3 per cent or what the additional cost would be per percentage point increase?
If it remained at 3 per cent the additional cost of servicing per annum would be £120,000.
Would it affect redemption costs?
Yes.
By how much?
The total of the increased capital cost would be approximately £1.2 million.