Michael McGrath (Cork South Central, Fianna Fail)

I thank the Minister for introducing this Bill, which we will be supporting. As the Minister confirmed, it is a technical Bill that ratifies changes to the articles of agreement of the IMF, particularly relating to the appointment of the executive board. The Bill is Ireland's part of the ratification process which will bring into effect the changes approved by the executive board of the IMF on 15 December 2010. It builds on a series of earlier reforms which date back to 2008. This is the second legislative measure in 2011 which, in effect, gives the Irish seal of approval to those reforms.

The key issue for us is what the implications are, if any, for Ireland. The Minister has outlined that the proposals we will hopefully approve today, taken in conjunction with the reforms enacted earlier this year, will yield a reduction on a weighted average basis of approximately 100 basis points to the interest rate Ireland is being charged by the IMF in respect of the funds being drawn down under the programme of assistance. There has already been a significant reduction so I suspect that most of the 100 basis points reduction is already factored in and has already taken place.

According to the National Treasury Management Agency's, NTMA, technical note, when the programme was negotiated in December 2010 the NTMA estimated at that time that the interest rate being charged by the IMF was 5.7% per annum. However, in a reply to a recent parliamentary question, the Minister confirmed that the estimated euro equivalent rate on credit outstanding is 4.79%.

See this speech in context