Dáil Éireann debate -
Wednesday, 3 Mar 1993

Vol. 427 No. 3

Written Answers. - Foreign Borrowing.

Jim O'Keeffe

Question:

62 Mr. J. O'Keeffe asked the Minister for Finance the total foreign borrowing of the Exchequer, the Central Bank and the National Treasury Management Agency between 1 September 1992 and 31 January 1993; and the additional costs of the repayment of this borrowing arising from the devaluation.

Minister for Finance (Mr. B. Ahern)

I am informed by the National Treasury Management Agency, which undertakes borrowing on behalf of the Exchequer, that between 1 September 1992 and 31 January 1993 an additional £2,042 million in foreign currency was borrowed. This figure includes a net repayment of £10 million by the Exchequer to the European Investment Bank. Based on the opening exchange rates as of 1 February 1993 the value of this additional foreign currency borrowing was increased by £170 million as a result of the devaluation of the Irish pound. As the Deputy will appreciate the amount actually repaid in Irish pounds will depend on the exchange rate on the dates of repayment. In this context the Deputy may wish to note that the vast bulk of the additional borrowing has a maturity of between five to ten years.

I am informed by the Central Bank that the liability to the European Monetary Cooperation Fund (EMCF) at end December was £716 million. The Bank has further informed me that the EMCF Debtor Position at end-January is market sensitive information which will be released by the Bank simultaneously to market participants tomorrow. The official ECU/Irish pound rate was at 1.34526 at end-January and 1.25363 on 1 February. This would indicate that the value of any EMCF debt outstanding at end-January would be 7.3 per cent greater on 1 February than it was at end-January. The actual additional cost on repayment of any such borrowing would of course depend on the official ECU/Irish pound rate on the date of repayment.