Dáil Éireann Debate, Thursday - 12 February 2015
76. Deputy Michael McGrath asked the Minister for Finance the average interest rate currently applying to each source of funds under the European Union-International Monetary Fund programme of assistance for Ireland; and if he will make a statement on the matter. [6526/15]
View answerI am advised by the National Treasury Management Agency (NTMA) that the position regarding the interest rate applying to each of the EU/IMF Programme loan facilities, as at 10 February 2015, is as set out in the table following.
|
Facility |
Loan Amount (bn) as at 10 Feb 2015 |
€ Equivalent (bn) as at 10 Feb 2015 |
Interest Rate on Loan Amount |
Reference Rate Basis |
|
EFSM |
EUR 22.5 |
22.5 |
3.00% |
Fixed rate based on EFSM cost of funds1 |
|
EFSF |
EUR 18.4 |
18.4 |
2.21% |
Some fixed but mainly pooled rate based on EFSF cost of funding |
|
UKT |
GBP 3.2 |
3.9 |
2.60% |
Fixed, based on UK cost of funding |
|
SKL |
EUR 0.6 |
0.6 |
1.08%2 |
3-month Euribor plus margin of 1% |
|
DKK |
EUR 0.4 |
0.4 |
1.07%2 |
3-month Euribor plus margin of 1% |
|
IMF |
XDR 9.0 |
10.3 |
2.79% |
Floating rate + 1% margin + surcharges |
1 The interest rate on Ireland's EFSM loans is based on the EFSM's cost of funds when it issues bonds. Such issuance is matched against the loans.
2 Reflects 3-month Euribor at time of most recent rate resets
The Deputy should be aware that the mixture of floating and fixed interest rates across the various EU/IMF Programme facilities makes it difficult to compare one facility directly against another as they contain different interest rate risk profiles, currencies and maturities. In addition, the floating interest rates quoted are at a point in time and are, therefore, subject to change depending on movements in market rates.
As the Deputy will be aware, Ireland is currently in the process of repaying the most expensive portion of its IMF loans and replacing it with less expensive market based funding. Following the second tranche of early repayment of approximately €3.5 billion on 6 February 2015, the total cumulative early repayment to date is approximately €12.5 billion, representing over half of the State's IMF loan facility.
