asked the Minister for Finance if he will comment on the reported decision of the ACC of using Euro currencies at 5 per cent interest to increase profitability and cushion themselves against bad debts instead of for the benefit of their borrowers.
Written Answers. - ACC Euro Currency Borrowing.
45.
The benefit of the low interest rate on the Euro-currency borrowing referred to has been passed on by ACC to its borrowers. Access to these funds by the ACC ensures that all ACC borrowers are paying a lower rate of interest on their loans than would otherwise be the case.
When account is taken of the contribution which ACC is making towards the exchange risk attaching to these funds, their cost to the ACC is over 8 per cent.