Dáil Éireann Debate, Tuesday - 14 July 2015
302. Deputy Pearse Doherty asked the Minister for Finance the value of outstanding European Financial Stability Facility and European Financial Stability Mechanism loans and bilateral loans linked to the bailout payable by the State; the timeframe for their payment; and the interest payable, for each of the next ten years of these loans. [28883/15]
View answerThe outstanding balances on the EFSF, EFSM and bilateral loans and the corresponding maturity profiles, as of end-June 2015, as provided by the NTMA, are outlined in the following table.
|
Year |
EFSF* €m |
EFSM** €m |
Bilateral*** €m |
|
2015 |
|
5,000 |
-86 |
|
2016 |
|
|
-130 |
|
2017 |
|
|
-94 |
|
2018 |
|
3,900 |
|
|
2019 |
|
|
1,949 |
|
2020 |
|
|
2,486 |
|
2021 |
|
3,000 |
817 |
|
2024 |
|
800 |
|
|
2026 |
|
2,000 |
|
|
2027 |
|
1,000 |
|
|
2028 |
|
2,300 |
|
|
2029 |
2,070 |
|
|
|
2030 |
1,900 |
|
|
|
2031 |
4,900 |
|
|
|
2032 |
2,194 |
3,000 |
|
|
2033 |
4,267 |
|
|
|
2034 |
1,480 |
|
|
|
2042 |
1,600 |
1,500 |
|
|
TOTAL O/S BALANCE |
18,411**** |
22,500 |
4,942 |
NOTES
Figures are unaudited and include the effect of currency hedging transactions, where applicable.
Rounding can affect totals.
*EFSF loans reflect the maturity extensions agreed in June 2013.
**EFSM loans are also subject to a seven year extension. It is not expected that Ireland will have to refinance any of its EFSM loans before 2027. However, the revised maturity dates of individual EFSM loans will only be determined as they approach their original maturity dates. The original EFSM maturities are reflected in the table.
***Bilateral loans were provided from the United Kingdom, Sweden and Denmark.
****A prepaid margin of €0.53 billion was deducted from the EFSF loan of €4.19 billion drawdown on 1 February 2011 giving a net liability of €3.66 billion. This margin prepayment will be refunded to Ireland on the maturity of this original loan in 2016. The total net liability of €57.44 billion included in the National Debt (€166.17 billion at end March 2013) takes account of this reduction.
It is not possible to give a definitive schedule of interest payments on these loans for each of the next ten years for a number of reasons, including:
- At end-June 2015, €11.2 billion of Ireland's disbursed EFSF loans are part of a pooled system whereby Programme countries pay the same interest rate. The pooled interest rate is a variable rate which is calculated daily and is based on the EFSF's cost of funds in managing the pool.
- Interest payable on bilateral loans from Sweden and Denmark is also based on a variable interest rate; the 3 month Euribor interest rate.
- The interest rate on EFSM loans is based on the EFSM's cost of funds when it issues bonds to fund the loans. Therefore the interest rate applicable on the rollovers of Ireland's existing loans will only be determined at the time the EFSM issues bonds to fund the maturity extensions.
The fiscal forecasts in the Stability Programme Update of April 2015 covered the period 2015-2020. As part of those fiscal forecasts, projected interest costs on the EFSF, EFSM and Bilateral loans based on estimated EFSF pooled, 3 month Euribor and EFSM rollover interest rates, as provided by the NTMA, were as follows:
|
Year |
Estimated Interest on EFSF/EFSM/Bilateral Loans €bn |
|
2015 |
1.2 |
|
2016 |
1.2 |
|
2017 |
1.1 |
|
2018 |
1.2 |
|
2019 |
1.3 |
|
2020 |
1.2 |
As all of the Bilateral loans will mature before the end of 2021, there will be no interest payable on these loans post 2021.
