asked the Minister for Finance if he will state the changes in the rates of interest charged on loans issued from the Local Loans Fund since 1947, and the dates on which changes were made.
Ceisteanna—Questions. Oral Answers. - Local Loans Fund: Rates of Interest.
The particulars requested by the Deputy are in the form of a tabular statement which, with the permission of the Leas-Cheann Comhairle, I propose to have circulated in the Official Report.
Following is the statement:
Date of Change |
Percentage to which Changed |
5 May, 1948 |
3¼ (from 2½) (a) |
6 October, 1952 |
5¼ (a) |
1 January, 1954 |
4¾ |
1 December, 1954 |
4½ |
10 March, 1956 |
5¼ |
14 November, 1956 |
5¾ |
28 October, 1957 |
6¼ (b) |
1 December, 1958 |
5¾ |
1 December, 1959 |
5½ |
(a) The rate of interest for local authority housing schemes remained at 3¼% for issues made up to 30 April, 1953. As from 1 May, 1953, the general rate of 5¼% was applied to local authority housing schemes also. Further, in respect of issues made from 5 May, 1948, to 30 April, 1953, for local authority housing schemes the effect of the increase from 2½% to 3¼% in the interest rate is offset in full by a special interest subsidy payable from the Vote for Local Government.
(b) This change did not affect the rate for issues under the Small Dwellings (Acquisition) Acts and Housing (Gaeltacht) Acts, which rate remained at 5¾% until 1 December, 1959, when the general rate of 5½% became applicable.
12.
asked the Minister for Finance if he will state the total outgoings per week in respect of interest and capital repayment on £1,500 borrowed from the Local Loans Fund at the current rate of interest where the period of repayment is (a) 35 years and (b) 60 years.
Loans from the Local Loans Fund are repayable in half-yearly sums on either the instalment or annuity system. On the instalment system the half-yearly repayment would be a variable figure diminishing as the principal is paid off. On the annuity system the half-yearly repayment on a loan of £1,500 made at the current interest rate of 5½ per cent. p.a. for 35 years would be £48 10s. 3d., and for 60 years, £42 18s. 1d.