asked the Minister for Finance (a) the reasons why the Government have decided to borrow from German sources, (b) the amount the Government intend to borrow, (c) the terms of the loan, (d) the name of the brokers and (e) what the Government intend to spend the money on.
Ceisteanna—Questions. Oral Answers. - German Loan.
9.
The official press release regarding the Sterling/Deutsche Mark Loan stated that, because of the postponement of the proposed Dollar Loan, arrangements are being made with S. G. Warburg & Co. Ltd. and Commerzbank A.G. with a view to the issue of £7 million 15-year SterlingDeutsche Mark Bonds. The arrangements are not yet completed nor are the terms agreed. The names of the brokers to the issue are W. Greenwell & Co., London, and Strauss Turnbull & Co., London. It is intended that the proceeds of the Loan should be used to finance the Public Capital Programme in the current financial year and thus reduce, in the interests of the private sector, Exchequer borrowing from the banking system.
Did the Minister say the "current" financial year?
Yes.
Then what about the rate of interest?
It has not yet been settled.
There is not very far to go in the current financial year. Will it be seven per cent? Is that estimate correct?
There or thereabouts.
It is the equivalent of the formula used by Deputy MacEntee, as Minister for Finance, of 10½ per cent internal.
The country has been sold down the drain now.