Vol. 405 No. 3
36 Mr. Kavanagh asked the Minister for Finance the estimated full year savings in the cost of servicing the national debt from (a) a reduction of 2 per cent in international interest rates and (b) an exchange rate of 1.90 US dollars to the punt; and if he will make a statement on the matter.
A reduction of 2 percentage points in international interest rates, including Irish interest rates, if maintained for a full year would reduce the annual cost of interest payments on the national debt by about £175 million. An exchange rate of 1.90 US dollars to the Irish Pound if maintained for a full year, as compared with the rate of 1.8180 dollars on 14 February, would reduce the Irish Pound value of annual interest payments by approximately £5 million.
The effect of changes in interest rates and exchange rates on the interest payments in any calendar year, including 1991, would of course depend on the timing and duration of any such changes.
