Dáil Éireann debate -
Wednesday, 9 Oct 1996

Vol. 469 No. 6

Written Answers. - Interest on Loans.

Ivor Callely

Question:

92 Mr. Callely asked the Minister for Finance the amount paid in interest on loans from financial institutions by semi-State bodies under the aegis of his Department since 1992; if he has satisfied himself with such arrangements; and if he will make a statement on the matter. [17953/96]

Minister for Finance (Mr. Quinn)

Interest charges in respect of the loans from financial institutions to semi-State bodies operating under the aegis of my Department for the period in question are as follows:

Year end 31 December	ACC Bank plc	ICC Bank plc	An Post National Lottery Company
	IR£m	IR£m	IR£m
1992	14.219	39.712	0.018
1993	15.378	41.154	0.007
1994	14.236	24.713	0.003
1995	22.232	26.759	0.001

The level of interest charges on loans is determined in accordance with the rates prevailing in the market at the time of the borrowing. In relation to the ACC and ICC Banks, the totals supplied above include interest paid on conventional term borrowings as well as interest payable on inter-bank transactions arising in the normal course of banking business.

Both the rates and the terms and conditions applying to conventional term borrowings by the above semi-State bodies are reviewed by my Department in advance of the actual borrowings. The ongoing management of the debt, once drawn, is a commercial matter for decision by the boards of the relevant bodies. I am satisfied that the arrangements which are in place for evaluating these matters are appropriate and satisfactory and that the bodies concerned are conducting their affairs in an efficient and businesslike manner.