Richard Bruton
Question:276 Mr. R. Bruton asked the Minister for Finance the current annualised interest rate at which the Exchequer can borrow. [19169/97]
Written Answers. - Exchequer Borrowing.
The interest rate at which the Exchequer can borrow depends on market conditions on the date the borrowing takes place and on the particular borrowing instrument used. A range of borrowing instruments are used by the Exchequer and different interest rates may apply to each instrument depending on its particular features of which the most important are the period of time for which money is borrowed and whether the interest rate is fixed or floating. Against this background, it is not possible to quote a single interest rate at which the Exchequer can borrow funds. However, the following are examples of current interest rates which are representative of those which the Exchequer might obtain on any borrowing at present:
|
Overnight |
6.3125 per cent |
|
Floating rate bonds |
6.125 per cent |
|
Five year fixed rate bonds |
5.60 per cent |
|
Ten year fixed rate bonds |
6.15 per cent |
The rates quoted for the five and ten year fixed rate bonds are the gross redemption yields for these instruments: these are the most accurate indicator of the annualised cost of such borrowing over the full life of the instrument.