Michael McGrath
Question:68 Deputy Michael McGrath asked the Minister for Finance the average expected interest rate and total interest payable on the national debt and general government debt in 2012 and 2013. [33917/11]
View answerThursday, 10 November 2011
Questions (68)
Written answers
National debt interest expenditure in 2012 and 2013 was forecast in the recently published Medium-Term Fiscal Statement (MTFS) at €6.8 billion and €7.2 billion respectively. General Government debt interest expenditure in 2012 and 2013 was forecast in the MTFS at €7.2 billion and €9.5 billion respectively. The large increase in General Government debt interest expenditure in 2013 over 2012 is due primarily to the Promissory Note interest. This is because the interest holiday on the Promissory Notes applies only for the years 2011 and 2012.
The National Treasury Management Agency (NTMA) advises that the National debt interest expenditure equates to an average interest rate of 5.3 per cent and 5 per cent respectively in 2012 and 2013. The implied average General Government debt interest rate was estimated at 4.4 per cent and 5.2 per cent respectively in 2012 and 2013 in the MTFS.