Written answers
Wednesday, 12 January 2011
Department of Finance
Fiscal Policy
2:30 pm
Michael D'Arcy (Wexford, Fine Gael)
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Question 221: To ask the Minister for Finance the interest rate being discussed for the loan from the British Government to the Republic of Ireland; and if he will make a statement on the matter. [48129/10]
Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Based on the market conditions prevailing at the time of the agreement, the interest rate on the UK loan is 5.9%.
The amount lent to Ireland by the UK will be the sterling equivalent of â¬3.8bn. The interest rate is based on a 7.5 year period. The rate on each tranche will be a fixed rate, set by adding a fixed margin to the sterling 7.5 year swap rate at the time of disbursement.
The interest charge is aligned with international rates and is between the EFSM and EFSF rates.
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