Written answers

Thursday, 30 October 2008

6:00 pm

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

Question 100: To ask the Minister for Finance the increased provision in 2009 over 2008 in respect of interest sinking fund and debt management expenses, distinguishing the increase due to higher interest rates, higher debt levels and earlier repayment schedules; and if he will make a statement on the forecast of Government debt servicing during 2009. [37757/08]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

The increase in debt service costs in 2009 is primarily due to the increase in the Exchequer borrowing requirement for 2008 and 2009, which is a direct consequence of the changed economic and fiscal realities that we now face. The level of the sinking fund is related to expected borrowing in respect of expenditure on voted capital services. My Department is informed by the NTMA that the debt service estimate for 2009 is €3,956 million. A breakdown of the increase in debt service cost as supplied to me by the Agency for 2009 over 2008 is given in the following table.

Debt Service€ million
2009 (Budget 2009)3,956
Forecast Outturn 2008 (Budget 2009)*2,192
Increase1,764
Explained by:
Cost of funding 2008 & 2009 EBRs1,360
Higher interest rate on replacement of €5bn bond maturing in 200977
Accrued interest on commercial paper issued in 2008 and maturing in 2009220
Increased Sinking Fund payments84
Debt management expenses23
Total1,764
*2008 estimate was €2,490 million in Budget 2008.

Comments

No comments

Log in or join to post a public comment.