Michael McGrath (Cork South Central, Fianna Fail)

The present rate is about 4.8% so it will reduce to approximately 3.8%, which is a very welcome improvement in the interest rate being charged by the IMF. I am sure that saving has been factored into the numbers for 2012 and 2013. This will come into effect in October 2012 so the impact in that year will only be marginal as it will only apply to a quarter of the year. Nonetheless, it will be a significant improvement. As the Minister indicated, it does not form part of the €875 million saving predicted for 2012 which is substantially based on the European facility.

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