Dáil Éireann Debate, Thursday - 16 June 2016
90. Deputy Michael McGrath asked the Minister for Finance the composition of the general government debt in terms of Exchequer debt borrowings under the European Union and Ireland's European Union-International Monetary Fund programme, retail debt and other forms, the term to maturity and average interest rate on each component, in tabular form; and if he will make a statement on the matter. [16497/16]
Amharc ar fhreagraGeneral Government Debt (GGD) is a measure of the total gross consolidated debt of the State compiled by the Central Statistics Office (CSO) and is the measure used for comparative purposes across the European Union. The National Debt is the net debt incurred by the Exchequer after taking account of cash balances and other financial assets. Gross National Debt is the principal component of GGD. GGD also includes the debt of central and local government bodies. GGD is reported on a gross basis and does not net off outstanding cash balances and other related assets.
Much of the information on GGD that the Deputy is seeking is available in the Stability Programme Update (SPU) published in April of this year. The published GGD figure for 2015 is €201.3bn, 93.8% of GDP, at an average interest rate of 3.3%. Further, Figure 4 on page 22 of the 2016 SPU, illustrates the maturity profile of long-term marketable and official debt as at end-March 2016 by facility type.
Details of the composition of General Government debt, its residual maturity and average interest rates as at end-2015 are set out in the table.
|
General Government Debt as at end December 2015 |
|||
|
Instrument |
Outstanding |
Weighted Average residual maturity |
Weighted Average Interest rate |
|
€bn |
Years |
% |
|
|
Government Bonds |
125.1 |
11.6 |
3.9%* |
|
EU-IMF Programme** |
49.7 |
12.1 |
2.2% |
|
State Savings *** |
16.7 |
*** |
0.83% - 2.26% |
|
Other Medium and Long-Term Debt |
1.2 |
11.5 |
4.0% |
|
Short term debt |
3.9 |
0.19 (71 days)**** |
-0.0% |
|
Other general government debt |
4.6 |
***** |
***** |
|
Total general government debt |
201.3 |
||
|
Sources: NTMA, CSO |
Rounding may affect totals. National Debt figures for end-December 2015 take account of the effect of currency hedging transactions.
Notes:
* This is the nominal interest rate which differs from the yield at issue.
** A prepaid margin of €0.53 billion was deducted from the EFSF loan of €4.19 billion drawn down on 1 February 2011 giving a net liability of €3.66 billion. The total net liability of €49.75 billion at end-December 2015 takes account of this reduction. EFSM loans are subject to maturity extensions designed to bring the original weighted average maturity to 19.5 years. It is not expected that Ireland will have to refinance any of its EFSM loans before 2027. However as the revised maturity dates of individual EFSM loans will only be determined as they approach their original maturity dates, the weighted average maturity figure above does not reflect the maturity extensions. Including certain assumptions for EFSM maturity extensions, the residual weighted average maturity of EU-IMF Programme loans was close to 14 years at end-2015. The EU-IMF Programme interest rate is an estimated weighted average, euro equivalent interest rate.
*** State Savings Schemes also include moneys invested by depositors in the Post Office Savings Bank (POSB) which does not form part of the National Debt but is part of other General Government Debt in the table above. These funds are mainly lent to the Exchequer as short-term advances and through the purchase of Irish Government Bonds. Taking into account POSB Deposits, total State Savings outstanding were €19.5 billion at end-December 2015. State Savings include products with original maturities ranging from 3-10 years. These products generally have a very high re-investment rate. Irrespective of the original term, NTMA State Savings products can be encashed on demand at any time repayment takes 7 days. Prize bonds can be encashed when 90 days have elapsed after the purchase date. The interest rates are the maximum interest rates (AER) payable on the fixed term fixed rate products available for purchase at end 2015. These rates were changed in June 2016.
**** The table shows the weighted average maturity and interest rate on short term paper which includes Euro Commercial Paper, Exchequer Notes and Central Treasury Notes.
*****The balance of GGD includes debt of Local Authorities, the Housing Finance Agency, non-commercial semi-state bodies, voluntary hospitals, and the HSE. This category also includes consolidation adjustments in respect of debt, including bonds, held by General Government entities.
