Vol. 422 No. 4
45 Mr. Ferris asked the Minister for Finance if the State discharged its guarantee for a £19,541,000 loan in 1991 held by a company (details supplied) before their privatisation; if so, if he will outline the way in which this was to be done; if he will give details of the direct costs incurred by his Department in the discharge of that loan or loan guarantee; and if he will make a statement on the matter.
The guaranteed debts referred to consisted of debts to commercial banks and to the European Investment Bank (EIB). As part of the agreement for the sale of the company, the Exchequer relieved the company of these debts on the date of closing the sale, namely 31 January 1992. On that date commercial bank debts were paid off and the Exchequer assumed responsibility for the debts to the EIB. The total cost as of 31 January 1992 including accrued interest was £21,025,000.
