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European Stability Programmes

Dáil Éireann Debate, Thursday - 14 June 2012

Thursday, 14 June 2012

Ceisteanna (30)

Peter Mathews

Ceist:

30 Deputy Peter Mathews asked the Minister for Finance if he will provide, in tabular form, the duration of each loan that Ireland has drawn down from the European Financial Stability Facility and European Financial Stabilisation Mechanism; the cost to the EFSF and EFSM of raising funds for each of these draw downs on the open market; and if he will make a statement on the matter. [28693/12]

Amharc ar fhreagra

Freagraí scríofa

The following tables, which have been provided by the NTMA, set out the funding operations done by the EFSM and EFSF where Ireland was a beneficiary. In some cases funding operations were done on behalf of another country at the same time and this is also indicated. The cost of funding to the lender may differ from the ultimate cost of borrowing to the borrower because of fees and other adjustments. However, as there is no interest rate margin applied by the EFSF and EFSM to Ireland, these differences are relatively minor.

Note that, in the case of the EFSF, it has moved to a pooled interest rate system, meaning that all beneficiary countries will pay the same interest rate. However, this system was established in March 2012 at which point Ireland had received loans at definitive interest rates, some of which will become part of the pooled interest rate system. This means that the two loans drawn from the EFSF before the establishment of the pooled system are at definitive interest rates whilst the balance will be based on the pooled system. As the pooled system was on an interim basis from November 2011 to end-March 2012, the first three disbursements from the EFSF in 2012 were provided on an interim basis, and will be rolled over in due course at which point they will be part of the pooled system proper. The pooled system means that the EFSF will no longer go to the capital markets to borrow specifically for Ireland and that the link between its market operations and its lending activities is no longer direct.

European Financial Stabilisation Mechanism

Amount of issuance

Maturity

Date of issuance

Loan beneficiary/ies

Disbursement date

EFSM’s Cost of Borrowing(all-in yield including banking fees)

€5.0bn

04-Dec-15

5 Jan. 2011

Ireland

12 Jan. 2011

2.62%

€4.6bn

04-Apr-18

17-Mar-11

€3.4bn for Ireland,€1.2bn for Romania

24-Mar-11

3.28%

€4.75 bn

04-Jun-21

24-May-11

€3bn for Ireland,€1.75bn for Portugal

31-May-11

3.55%

€4.0bn

04-Sep-26

22 Sept. 2011

€2bn for Ireland;€2bn for Portugal

29 Sept. 2011

3.07%

€1.1bn

04-Oct-18

29 Sept. 2011

€0.5bn for Ireland;€0.6bn for Portugal

6 Oct. 2011

2.50%

€3.0bn

04-Apr-42

9 Jan. 2012

€1.5bn for Ireland;€1.5bn for Portugal

16 Jan. 2012

3.79%

€3.0bn

04-Apr-32

27 Feb. 2012

Ireland

05-Mar-12

3.41%

European Financial Stability Facility

Amount of Issuance

Maturity***

Raised on

Details

Disbursement date

EFSF’s Cost of Borrowing

€5.0bn

18-Jul-16

25-Jan-11

€4.2bn of which €3.6bn disbursed

01-Feb-11

2.89%

€3.0bn

04-Feb-22

07-Nov-11

14-Nov-11

3.59%

Pooled issuance of €5.55bn.

04-Feb-15

Diversified funding strategy

€1.27 billion*

12-Jan-12

1.725%

19-July-12

€0.48 billion*

19-Jan-12

0.2664%

23-Aug-12

€1.00 billion*

15-Mar-12

0.1908%*

3-Apr-37

€2.8 billion

03-Apr-12

See**

*These amounts were provided on an interim basis pending the full implementation of the pooled interest rate system. From the maturity dates shown, the amounts will be provided from the pooled system.

**The EFSF funding provided to Ireland under pooled issuance comes from a variety of fundings, and the EFSF is not yet in a position to confirm their cost of funding from that pool.

***The Heads of State or Government of the Euro Area and EU Institutions in their Statement of 21 July 2011 decided to lengthen the maturity of future EFSF loans "to the maximum extent possible from the current 7.5 years to a minimum of 15 years and up to 30 years".

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