Written answers

Wednesday, 12 January 2011

2:30 pm

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Question 101: To ask the Minister for Finance the total interest that, under current conditions, will need to be repaid in 2011; the projected interest costs for 2011 if money is drawn down under the EU/International Monetary Fund loan; and if he will make a statement on the matter. [1406/11]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Minister, Department of Finance; Dublin West, Fianna Fail)
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Debt servicing costs are made up of three separate components: (i) debt interest payments, (ii) the sinking fund provision and (iii) debt management expenses. I have been advised by the NTMA that the debt service estimate underpinning the Budget 2011 public finance forecasts amounts to €5.6 billion in 2011, with €5 billion coming from the Exchequer and €0.6 billion from the Capital Services Redemption Account. This estimated cost assumes that funds are drawn down under the joint EU/IMF programme of financial assistance.

The actual cost of servicing the borrowing under the programme will depend on the prevailing market rates at the time of each drawdown.

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