Thursday, 24 January 2019

Ceisteanna (90)

Catherine Murphy

Ceist:

90. Deputy Catherine Murphy asked the Minister for Finance the number of bilateral loans Ireland has with the UK; the amount outstanding per loan; the original principal sum per loan; the interest rate per loan; the way in which these loans with be settled in the context of Brexit; the preparedness of the State regarding Brexit in the context of outstanding bilateral financial commitments; and if he will make a statement on the matter. [3583/19]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

The UK bilateral loan provided as part of the EU-IMF Programme was drawn down in eight equal tranches of £403 million over the period October 2011 to September 2013. The total UK bilateral loan outstanding is £3.23 billon.

This is a fixed rate loan. The weighted average interest rate, including service fees, on the aggregate UK loan facility is 2.6%. Interest is paid semi-annually, in June and December.

The first tranche is due to be repaid in April. The table following provides further information.

 Loan Tranche

Amount Maturing £m

Month/Year of Maturity

1

403

April   2019

2

403

July   2019

3

403

September   2019

4

403

February   2020

5

403

April   2020

6

403

September   2020

7

403

December   2020

8

403

March   2021

Total

3,227

 -

The Exchequer is well positioned to fund these loan maturities. It had over €15 billion in cash at the end of 2018 and the NTMA has already raised €4 billion earlier this month through the issue of a new ten year benchmark bond.

I do not expect Brexit to have any impact on the repayment of the UK bilateral loan.

The currency exposure has been hedged by the NTMA in its management of the National Debt.