asked the Minister for Finance the total amount of money borrowed by the Irish nation from the European Investment Bank; the amount allocated to each State agency; the amount of money which has been repaid; the interest rate of the borrowings; the term or number of years that each loan has been borrowed; if further loans are under negotiation by the Irish Government; and if he will put special emphasis on agriculture and industrial development.
Written Answers. - EIB Loans.
380.
In the period from 1973, when Ireland became a member of the European Investment Bank (EIB) by virtue of our accession to the European Communities, to 1984 inclusive, EIB loan signings amounted to IR£1,325.1 million. Loans to the Exchequer accounted from IR£645 million or almost 49 per cent of the total while the balance of IR£680.1 or just over 51 per cent of the total was lent to State-sponsored bodies and private companies.
The amounts borrowed by each State agency from the EIB in this period are summarised in the following table:
|
State Body |
EIB Loans Signed (IR£million) |
|
ESB |
217.0 |
|
ITI |
135.0 |
|
ICC |
112.0 |
|
CIE |
58.0 |
|
ACC |
26.1 |
|
Bord na Mona |
19.0 |
|
BGE |
18.0 |
|
NET |
17.2 |
|
B + I |
12.5 |
|
IDA |
10.0 |
|
CSET |
2.8 |
|
Total |
627.6 |
A further £IR£52.5 million in EIB loans were signed by the private sector. Of the IR£1,325.1 million borrowed to date from the European Investment Bank, some £IR£140 million has been repaid in accordance with the repayment schedules governing each of the individual loans.
As to the interest rate of the borrowings, there have to date been some 126 separate EIB loans to this country. All of these loans were denominated in foreign currencies and generally speaking each individual loan was comprised of a cocktail of such currencies, up to five different currencies in many cases, each carrying its own interest rate. In the circumstances, it would be difficult to provide the interest rate on the borrowings as it will be apparent that some 600 or so different interest rates could be involved. It can be pointed out, however, that EIB loans are at normal commercial rates of interest. Because of the Bank's status, it secures its funds at very keen terms which it then passes on to its clients with the addition of a very small margin for administration and for building up reserves. The Bank is a non-profit making institution but it is not permitted to provide subsidised loans.
As to the term of the loans, the EIB is the European Community's Bank for long term finance and generally speaking loans may be for a period ranging from five to 20 years. In certain cases even longer maturities can be negotiated. The majority of the loans to the Exchequer have been for 20 years.
Concerning the prospects for further EIB loans to this country, it would not be appropriate to divulge details of loans currently under negotiation. Because EIB loans are an attractive source of foreign borrowing for the Exchequer, since the long term funds provided are at very competitive fixed interest rates, as many eligible Exchequer financed projects as possible within the Public Capital Programme are at present submitted to the EIB for loan financing. This will continue to be the approach provided that the EIB's terms continue to be attractive.
The financing of industry and agriculture by way of EIB funds has been effected for the most part in the past by channelling these funds through the ICC and ACC mainly to small and medium sized manufacturing and agri-business firms as well as for some on-farm investment and the tourism sector. The possibilities for securing EIB funds for these important sectors are kept under review and the needs of these sectors for finance will continue to be borne in mind in discussions with the EIB