(Limerick East): asked the Minister for Finance the total national debt; the cost of servicing this debt in 1987; the proportion of the debt which is domestic and foreign; in respect of foreign debt the currencies in which it is borrowed; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - National Debt.
49.
The national debt at 31 March 1987 is estimated at £25,380 million, including £15,617 million of domestic debt, representing 61 per cent of the total, and £9,763 million of foreign debt, 38 per cent of the total. The 1987 cost of servicing this debt, including the cost of servicing new borrowings up to 31 December 1987 is £2,146 million.
Almost 88 per cent of the foreign debt at 31 March 1987 was denominated in five currencies. These currencies and the proportion of the foreign debt they accounted for were: Deutsche Mark (28.4 per cent), US Dollar (25.8 per cent), Swiss Franc (14.6 per cent), Japanese Yen (12.5 per cent) and European Currency Unit (6.5 per cent). Apart from the Dutch Guilder, which accounted for 5.8 per cent and Sterling, which accounted for 4.7 per cent, no other currency accounted for a significant proportion of the debt.
The budgetary measures introduced by this Government are a significant step towards stabilising the debt/GNP ratio, which had been increasing at an unsustainable rate. The Government are determined to pursue their policy of restoring order to the public finances and reducing dependency on borrowing. So far as the foreign debt is concerned, we will continue to ensure a balanced currency distribution and good maturity structure in the debt. Every effort will continue to be made to achieve the maximum savings in debt-servicing costs.
(Limerick East): I understand that the Minister's Department now have a man of secretary rank looking after foreign debt. Has there been any change in recent times in the percentage holding of foreign currency? Is there a policy which requires a certain proportion to be kept in domestic and a certain proportion to be kept in foreign currency? What are the parameters of this policy? Could the Minister also provide the House with some information about how the local loans fund is treated in the debt? Is it represented as part of the domestic debt, and in that respect is there a chance that it is double counted?
In answer to the first part of the Deputy's question, there are no appreciable changes. I do not have the exact information but from my experience I suggest that it is an ongoing thing that would be reviewed on a three and six monthly basis. In reply to the second part of the Deputy's question about the ratio of foreign and national debt, that is something that is decided on a management basis. Obviously, as was the case in the past, it is intended that the highest percentage would come from national debt, rather than by way of increasing the foreign debt.
(Limerick East): Can the Minister get me information on the local loans fund?
Yes. I do not have it with me at the moment but I will communicate with the Deputy.
Perhaps the House would wish to deal with the remaining question in the name of Deputy Michael Noonan.