Dáil Éireann Debate, Wednesday - 8 July 2015
74. Deputy Thomas Pringle asked the Minister for Finance the amount of money that has been lent to Ireland by the International Monetary Fund; the interest rate payable; the total amount of interest paid; the maturation date of the loans; and if he will make a statement on the matter. [27915/15]
View answerAs part of the EU/IMF Programme of Financial Support the State entered into in late 2010, the IMF provided SDR19.5 billion (approximately €22.5 billion) in funding under its Extended Fund Facility (EFF). Borrowings from the IMF are denominated in Special Drawing Rights (SDR), an international reserve asset created by the IMF. Its value is based on a basket of four key international currencies; the euro, Japanese yen, pound sterling and U.S. dollar.
This funding was provided in twelve individual tranches, the last of which was drawn down in December 2013. This funding was originally due to amortise over the period July 2015 to December 2023.
However, following the early repayment of SDR15.7 billion (just over €18 billion) over the course of the period December 2014 to March 2015, the residual balance, as of end-June 2015, stands at SDR3.8 billion (approximately €4.3 billion). This figure takes account of the effect of currency hedging transactions.
The amortisations will now commence in January 2021 and conclude in December 2023. Details of the annual schedule of amortisations are set out in the following table.
|
- |
SDR BN |
|
2021 |
2.35 |
|
2022 |
1.07 |
|
2023 |
0.35 |
The interest rate on the loan amount outstanding at end-June 2015 is 1.05 per cent. This comprises the SDR interest rate of 0.05 per cent plus a 1 per cent margin. The more expensive portion of the IMF loan facility has been fully repaid and so surcharges previously applicable no longer apply.
Interest paid on IMF loans over the period 2011 to end-June 2015 amounts to SDR1.7 billion (approximately €2 billion).
