asked the Minister for Finance if his attention has been drawn to the report of the Central Bank stating that the capital loan ceiling of the Associated Banks was not reached; and, in the light of this, if he will indicate why it was deemed necessary to raise the £9 million loan in Germany.
Ceisteanna—Questions. Oral Answers. - Associated Banks Loan Ceiling.
27.
The report in question gives estimates of the outturn for the year, final figures for which are not yet available. It indicates that it is expected that bank lending would fall short by £23 million of the amount projected in the Central Bank's credit advice for 1971-72, but that bank deposits would also fall short by some £30 million. In the course of the year the Government raised £33 million from the banking system, which was the amount projected in the credit advice. The residual borrowing requirements for the year 1972-73 total £94 million, that is £66 million for the capital budget and £28 million for the current budget. As indicated in my reply of 19th April last, a proportion of the 1972-73 requirements will be raised from the Irish banking system. The borrowing requirement is of such an amount however that it is evident that it will be necessary to borrow a certain amount externally. The amount of £9 million was borrowed with this in mind.
Why was not the £23 million, or part of it, called on first? Was it known to the Department of Finance in advance?
If the Deputy studies my reply——
I have studied it and that is why I am more convinced than ever that the Department of Finance were not aware of it.
I think I have answered the Deputy's question comprehensively and clearly.