Dáil Éireann Debate, Tuesday - 21 March 2017
175. Deputy Dara Calleary asked the Minister for Finance the annual interest rate of the debt he plans to redeem from the proceeds from the sale of a bank (details supplied); and if he will make a statement on the matter. [12795/17]
View answerAs I have previously stated it is my position that the proceeds from the sale of the State's shareholdings in Irish banks, including AIB, will be used to reduce the outstanding level of public debt. The rationale for this approach is that the State's debt levels have been consistently identified as a significant risk factor by national and international experts, such as the Irish Fiscal Advisory Council, the Central Bank, the EU Commission, and the International Monetary Fund amongst others. The State's economic and fiscal interests will be best served by reducing the level of public debt and its associated risks.
It will be a matter for the National Treasury Management Agency (NTMA) to incorporate the proceeds of these sales into its future funding and debt management strategy at the appropriate time. The NTMA can adjust the funding strategy in the light of monies received.
At end-2016, the average interest rate on the outstanding stock of public debt was estimated to be just over 3 per cent.
