Dáil Éireann Debate, Wednesday - 12 January 2011
221 Deputy Michael D’Arcy asked the Minister for Finance the interest rate being discussed for the loan from the British Government to the Republic of Ireland; and if he will make a statement on the matter. [48129/10]
Amharc ar fhreagraBased on the market conditions prevailing at the time of the agreement, the interest rate on the UK loan is 5.9%.
The amount lent to Ireland by the UK will be the sterling equivalent of €3.8bn. The interest rate is based on a 7.5 year period. The rate on each tranche will be a fixed rate, set by adding a fixed margin to the sterling 7.5 year swap rate at the time of disbursement.
The interest charge is aligned with international rates and is between the EFSM and EFSF rates.
