Seanad debates

Tuesday, 17 December 2002

National Development Finance Agency Bill, 2002: Second Stage.

 

The Minister for Finance has the power to make funds available to the NDFA on such terms as he or she considers appropriate. Should the NDFA or a company require funding at a time when market conditions are not optimal, the Minister will be able to provide interim funding. In other words, this provision will ensure that the NDFA or a company is not held hostage to the financial markets. Depending on Exchequer resources funds may be provided to such bodies on a longer term basis. This provision will prove most useful in enabling the Exchequer to top up or provide core funding for a project where there are hard tolls or user charges but not in sufficient quantity to service 100% private sector funding. In such an instance the Exchequer would provide, say, 20% funding and the company would seek to raise the balance based on the cash flow for the project and would allow, of course, for a Government guarantee.

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