Vol. 434 No. 4
90 Mr. Yates asked the Minister for Finance if he will give the potential saving in the years 1993 and 1994 to the National Treasury Management Agency due to the international lowering of interest rates and the cost of servicing the national debt.
It is estimated at this stage that the changes in interest rates since the budget will contribute to savings on debt service costs in 1993 of the order of £100 million. However, the eventual outturn for expenditure on debt service costs could also be influenced by interest and exchange rate developments during the remainder of this year.
The budget for the cost of servicing the national debt in 1994 has not yet been finalised and accordingly it is not possible to quantify what savings might arise. the level of new borrowing in 1994 and the particular currencies and types of debt instruments used to fund that new borrowing and to refinance maturing debt would be important factors in any such exercise. None of these items will be determined until the 1994 budgetary figures are being finalised.
