Joan Burton (Dublin West, Labour)
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Question 101: To ask the Minister for Finance the expected rise in the cost of financing Government debt in 2009; the extra cost on financing such debt since the end of September 2008; the additional volume of debt since September 2008; the projected extra volume of debt to the end of 2009; and the cost thereof. [4164/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The National Treasury Management Agency have advised me that the expected cost of financing the national debt in 2009 is estimated at €4,500 million, which represents an increase of €2,401 million on that for 2008. The reasons for this increase are: the costs of funding the now larger Exchequer deficits for 2008 and 2009; higher interest rates on Government bonds; and timing differences arising from interest accrued in 2008 but payable in 2009.

At Budget time in October last an Exchequer Borrowing Requirement of €13,412 million in 2009 was forecast. The expected cost of financing the national debt in 2009, based on the Budget day forecast for borrowing, was €3,956 million. The Addendum to the Stability Programme Update, which was published in early January, presented revised forecasts for the Exchequer Borrowing Requirement. The 2009 requirement is now forecast at €17,980 million. This represents an increase of €4,568 million over the Budget day forecast and in terms of financing costs the estimate has increased by €544 million. The main reasons for this are: the increase in the estimate for the 2009 Exchequer Borrowing Requirement, as referred to above; and the higher interest rates currently prevailing on Government bonds.