Dáil Éireann Debate, Tuesday - 15 January 2019
250. Deputy Michael McGrath asked the Minister for Finance the estimated amount which has been saved in debt servicing costs as a result of the historically low borrowing costs since the economic crisis; and if he will make a statement on the matter. [1606/19]
View answerIt is difficult to isolate the impact of particular factors on the debt service bill. However, what I can say is that in the Stability Programme Update in April 2014, debt service costs for 2018 were projected to be close to €10 billion. The National Treasury Management Agency (NTMA) have advised me that the actual outturn for 2018 was under €6 billion. Furthermore, debt service is now more than 20% below its 2014 peak.
There are a number of reasons why the debt service bill is so much lower than previously projected. These include the European Central Bank's Quantitative Easing (QE) programme which has compressed sovereign bond yields, and the full early repayment of IMF Programme loans.
Looking back further towards the earlier part of the decade, the removal of margins on EU Programme loans and the replacement of the IBRC Promissory Notes have also helped reduce the debt service bill.
I am advised that the debt service bill is expected to fall further this year.
