Michael McGrath (Cork South Central, Fianna Fail)
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Question 90: To ask the Minister for Finance if, as part of the negotiations currently underway regarding a reduction in the interest rate on our EU / IMF Programme, he will ensure that Ireland seeks to have any such interest rate reduction applied to full amount of the EFSF and EFSM funds and not just the amounts yet to be drawn down; and if he will make a statement on the matter. [18141/11]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy will be aware, the Euro Area Heads of State and Government agreed in principle to a reduction in the interest margin charged to programme countries. This has been applied in respect of Greece and Portugal. However, a decision to apply it to Ireland's loans has not yet been taken. This is because another Member State is asking for Ireland to deliver a quid pro quo in return for an interest rate reduction in the form of a change in our Corporation Tax. However, we have made it clear that we will not agree to this. Contacts on interest rates are continuing at official level. I have raised it at EU Finance Ministers meetings, and in bilateral meetings with my EU counterparts, most recently at the Luxembourg meetings of the eurogroup/ECOFIN Council. Furthermore, this issue was raised in the recent contacts that the Taoiseach had with President Sarkozy on the margins of last week's European Council meeting.

We must recognise that the European focus is on the difficulties currently facing Greece. Nevertheless, the Government will continue to avail of every suitable opportunity to press our case for an interest rate reduction in respect of future interest payments both on funds already drawn down and those to be drawn down in future from the EFSF and EFSM. In this context, I would refer the Deputy to my response to Parliamentary Question No. 152 of 15 June last.