Dáil Éireann Debate, Wednesday - 13 February 2013
66. Deputy Pearse Doherty asked the Minister for Finance the amount of interest that will be paid in each of 2013, 2014 and 2015 on the sovereign bonds that replace the promissory notes; and if he will make a statement on the matter. [7733/13]
View answerAs the Deputy will be aware the Irish Government Bonds that have been issued in exchange for the Promissory Notes are floating rate bonds. The coupon on these bonds is 6-month Euribor plus a margin ranging from 2.50% to 2.68%. Given the nature of this floating rate it is impossible to be accurate with regard to the exact interest cost in 2013 to 2015. As part of the explanatory information that was released by the Department of Finance in relation to the transaction last week, estimates were produced which showed an interest expense of €750 million for 2013, €875 million for 2014 and €950 million for 2015. A copy of this presentation is available on the Department of Finance website under the following link: http://www.finance.gov.ie/viewdoc.asp?DocID=7543
It was also highlighted in this presentation that the interest costs shown were best estimates.
