Dáil Éireann debate -
Thursday, 13 Oct 1994

Vol. 445 No. 8

Written Answers. - Interest Charged by Local Authorities.

Bernard J. Durkan

Question:

96 Mr. Durkan asked the Minister for the Environment the interest rate charged by local authorities on foot of the various housing loans administered by them; if such charges are in line with inflation and interest rates; and if he will make a statement on the matter. [1280/94]

Minister of State at the Department of the Environment (Mr. Stagg)

The rates of interest charged on housing loans administered by local authorities are:

Loan Type	Interest Rate
	%
Local authority variable rate	7.25
Local authority convertible	7.25
Local authority fixed rate	up to 12.50
Housing Finance Agency (income- related)
Advanced up to 30 June, 1983	5.64
Advanced on or after 1 July, 1983	8.76

The rates for local authority variable and convertible loans are those applicable at 13 October 1994 and are generally related to prevailing market rates.

The rates for local authority fixed rate loans (which were not advanced since 1 December, 1987) were fixed by reference to the cost of long term funds to the Exchequer or the HFA at the time the loans were made.

The rates for HFA loans are those that applied for the year ended 30 June, 1994 and are based on the rate of inflation for the year ended mid-May, 1994. The difference in the two rates charged by the HFA is due to the different operating margins chargeable under the loan contracts.