Written answers

Tuesday, 28 June 2011

8:00 pm

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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Question 160: To ask the Minister for Finance when the next draw down of funds under the EU / IMF Programme is due to take place; if he will confirm the source from which the draw down will come; the amount involved; and if he will make a statement on the matter. [17581/11]

Photo of Michael NoonanMichael Noonan (Minister, Department of Finance; Limerick City, Fine Gael)
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Future disbursements are kept under constant review and are the subject of discussion in the quarterly reviews. Disbursements in each quarter can only take place after the IMF Executive Board, the Eurogroup and ECOFIN have approved the compliance reports prepared, respectively, by IMF Staff and the European Commission Services. The actual disbursements take place in the period following the respective meetings. Disbursements from the EFSF and EFSF are somewhat dictated by the timing of their market interventions and discussions around this are held with the NTMA as appropriate.

Under the combined 1st and 2nd Reviews, which took place in April 2011, the disbursement profile was agreed as set out in the following table:

* These are net disbursement figures. Gross borrowing will be higher due to the credit enhancement measures required under EFSF arrangements.

The funds to be sourced from the EU includes an estimated €4.8 billion of bilateral loans from the UK, Sweden and Denmark. Under the bilateral agreement with the UK worth a total value of Stg£3.2 billion (€3.8 billion, based on the conversion rates prevailing in November 2010, is the assumed value in the table above), the funds should be disbursed in eight equal tranches starting in the third quarter of 2011. The bilateral loan agreements, including the disbursement profiles, with Sweden and Denmark are being finalised. The current expectation is that the combined €1 billion from these sources will be split equally between 2012 and 2013 and this is reflected in the table.

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