Denis Naughten
Ceist:452 Mr. Naughten asked the Minister for Finance the current figure for the national debt; the average rate of interest charged on this debt; and if he will make a statement on the matter. [17327/02]
Written Answers. - National Debt.
Ned O'Keeffe
Ceist:454 Mr. N. O'Keeffe asked the Minister for Finance the national debt for 1995 to 2002 inclusive; the currency borrowed in for each of these years; the amount repaid at any time in the past eight years, from 1995; the rate of interest paid for 1995, 1996, 1997, 1998, 1999, 2000, 2001, and 2002; and if he will make a statement on the way in which the national debt will be increased or decreased over the next three years. [17385/02]
I propose to take Questions Nos. 452 and 454 together.
The following figures give details of the level of the national debt and the general government debt-GDP ratio – a slightly wider measure of debt which is the standard measure used in the EU – from the years 1995 to 2001:
|
National Debt € million |
Domestic Currency |
Foreign Currency |
Total |
GGDebt/GDP Ratio% |
|
|
1995 |
24,945 |
13,412 |
38,358 |
82.8 |
|
|
1996 |
26,911 |
11,070 |
37,980 |
74.1 |
|
|
1997 |
28,442 |
10,524 |
38,966 |
65.1 |
|
|
1998 |
28,144 |
9,366 |
37,509 |
55.2 |
|
|
1999(1)(2) |
37,330 |
2,518 |
39,848 |
49.7 |
|
|
2000 |
34,397 |
2,114 |
36,511 |
39.1 |
|
|
2001 |
34,113 |
2,073 |
36,186 |
36.4 |
(1) From 1999 onwards, all debt denominated or hedged into euro is reported as domestic debt.
(2) The increase in the debt between 1998 and 1999 reflects the accounting effect of the Securities Exchange Programme. The Securities Exchange Programme was carried out by the NTMA in 1999 in order to ensure the competitiveness of Irish Government bonds in the new euro trading environment. Under the programme old bonds with a high interest coupon were exchanged for a larger nominal amount of new bonds with a lower interest coupon close to market rates. The programme increased the nominal value of the debt by some €3,428 million. However, the increase in debt due to the programme will be compensated for by a reduction in debt service costs as lower coupons are paid on the increased amount of debt.
The change in debt in particular years is principally influenced by the Exchequer balance. An Exchequer surplus is used to decrease debt by that amount, an Exchequer deficit is funded through borrowing of that amount. The change in the value of the debt in a particular year will not equal the Exchequer balance as the debt is also affected by other factors such as exchange rate movements and the capital values at which bonds are issued and cancelled.
The projected general government debt-GDP ratio at end 2002 is 33.8%. The ratio is projected to remain around 34% to 2004. These projections will be updated in the budget.
The net interest paid on the national debt from 1995 to 2001 and the implicit interest rate is set out in the following table:
|
Year |
Debt Interest€ million |
Implicit Interest Rate% |
|
1995 |
2,652 |
7.0 |
|
1996 |
2,800 |
7.3 |
|
1997 |
3,136 |
8.2 |
|
1998 |
2,660 |
7.0 |
|
1999 |
2,350 |
6.0 |
|
2000 |
2,070 |
5.4 |
|
2001 |
1,879 |
5.2 |
The projected figure for 2002 is €1,974 million.