Vol. 231 No. 8
asked the Minister for Finance the increased cost of the repayments of loans negotiated with (a) the International Monetary Fund, (b) the Bank of Nova Scotia and (c) the 7 per cent sterling Deutschemark bonds as a result of the devaluation of the £1.
22.
asked the Minister for Finance the increased cost of repayments of foreign borrowings by the Central Bank as a result of the devaluation of the £1.
23.
asked the Minister for Finance the increased cost of repayments still outstanding under the United States loan agreements as a result of the devaluation of the £1.
I propose, with the permission of the Ceann Comhairle, to take Questions Nos. 21, 22 and 23 together.
The increased costs in Irish currency of the official repayments of foreign loans as a result of devaluation are as follows:—
|
£ million |
|
|
(i) Drawing from the International Monetary Fund |
1.2 |
|
(ii) Sterling/Deutsche Mark Bonds |
1.2 |
|
(iii) United States Loan Agreements (Marshall Aid) |
6.4 |
The loan from the Bank of Nova Scotia is repayable in Irish currency or sterling and is not affected by devaluation.
The Central Bank has not made any foreign borrowings.
Can the Minister say if International Monetary Fund borrowings are made in US dollars?
It is a complicated mechanism. When a country wishes to borrow from the Fund, the procedure is that it sells its currency to the Fund. We sold our currency in return for a package of other currencies—dollars and Deutschemarks and so on.
It is substantially true to say that repayments must be effected either in dollars or in some other hard currency for the time being?
Very likely.
