Michael McGrath (Cork South Central, Fianna Fail)
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Question 45: To ask the Minister for Finance when he expects the interest rate reductions applying to funds available to Ireland under the European Financial Stability Fund and European Financial Stability Mechanism to take legal effect; and if he will make a statement on the matter. [29342/11]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy will be aware, the Euro Area Heads of State or Government (HOSG) agreed on 21 July 2011 to reduce the cost of the European Financial Stability Facility (EFSF) to lending rates equivalent to those of the Balance of Payments facility close to, without going below, the EFSF funding cost. The EFSF Amendments are currently the subject of ratification by all Euro Area Member States. The parliamentary procedures are completed in sixteen out of the seventeen countries at this stage. Slovakia has yet to complete its parliamentary procedures. It is understood that Slovakia is endeavouring to complete these procedures by the end of this week.

The amendment EFSF Framework Agreement, which enables the interest rate reductions, will take legal effect when all Euro Area Member States have completed the ratification of the amendments. It will be applied to our EFSF loans once a revised loan agreement has been signed. Earlier this week, the Council of the European Union approved the EU Commission's proposal to eliminate the margin of 2.925% on the EFSM facility.