Wednesday, 12 January 2011
Department of Finance
Question 95: To ask the Minister for Finance is there an agreement to draw down all funds from the European Financial Stability Mechanism, the European Financial Stability Facility and the International Monetary Fund proportionally; the amounts needed in 2011; when these funds will be drawn down; the uses to which these funds will be put when drawn down in 2011; and if he will make a statement on the matter. [1409/11]
Question 99: To ask the Minister for Finance the plans the European Financial Stability Mechanism and the European Financial Stability Facility have to raise money on the markets to fund the Irish bailout; if he was consulted on these plans; and if he will make a statement on the matter. [1308/11]
Question 131: To ask the Minister for Finance when he intends to draw down the first instalment of the International Monetary Fund/EU package; if he will provide a timeline for planned drawdowns from this package; and if he will make a statement on the matter. [1407/11]
I propose to take Questions Nos. 95, 99 and 131 together.
On January 5th the EFSM launched a 5 year bond, of which it sold â¬5 billion. These funds were raised at a cost of 5.51per cent to Ireland. Ireland will be in receipt of this on January 12th. A receipt equivalent to about â¬5.8 billion is expected from the IMF on January 18th. The cost of these funds will depend on market conditions when the funds are drawn down. Further drawdowns from the IMF of about â¬2.1 billion per calendar quarter are scheduled during 2011, starting in March. Each of these drawdowns will be subject to Ireland's preceding quarterly review by the EU-IMF.
The EFSF is likely to access the bond markets on behalf of Ireland towards the end of January and the EFSM is expected to similarly access the markets later in the first quarter. In broad terms, the amounts drawn down from each of the three external sources are intended to be roughly equal over the course of the year. The timing of the EFSM and EFSF receipts are subject to the market entry strategies of these bodies and discussions with the Irish authorities. Funding from the UK is likely to commence in the third quarter of 2011 and discussions are ongoing as to the drawdown schedule. The rate of interest is expected to be about 5.9 per cent, based on current market conditions.