The system of financing EU premia schemes' payments in Ireland (EAGGF Guarantee) is as follows: My Department borrows the money required to cover the payments to be made in any particular month, makes the payments out of these borrowed funds and recoups the amounts paid from the EU after the payments have been made.
The system of financing EU disadvantaged areas schemes' payments in Ireland (EAGGF Guidance) differs slightly from the foregoing in that recoupment is received on a yearly or twice yearly basis rather than a monthly basis and only 65 per cent of expenditure is recouped — the other 35 per cent has to be borne by the Irish Exchequer. Notwithstanding these differences, EU recoupment is received under these schemes also only after the payments have been made.