Alan Farrell (Dublin North, Fine Gael)
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Question 88: To ask the Minister for Finance if he will outline the long term sustainable repayment plans for loans given to recapitalise the banking system and to fund the day to day expenditure of the State; and if he will make a statement on the matter. [26840/12]

Michael Noonan (Limerick City, Fine Gael)
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I understand your question is intended to ascertain when the loans drawn down from the EU/IMF Programme will be repaid. I would first of all emphasise that the funds drawn down under both the EU/IMF programme and the bilateral loan agreements are not ring-fenced for particular uses and contribute alongside tax and other State revenues to meeting all calls on the Exchequer. However, the cost of bank recapitalisation to date has been met from our existing resources – cash reserves and the NPRF. Under Ireland's EU-IMF Programme, which is due to expire at the end of 2013, a total of €67.5 billion in loans will be provided from EU facilities, bilateral loans and the IMF.

At the end of April 2012, Ireland's nominal borrowings under the EU/IMF Programme amount to €48.97 billion.

The weighted average life of the loans drawn down to date is 9.8 years.

The estimated all-in fixed euro equivalent cost of loans received under the EU/IMF assistance programme is 3.46%.

When the programme was initially agreed the average maturity of all loans was set at 71⁄2 years. Following the Euro Area Heads of State or Government meeting in July 2011, it was agreed that average maturities for the EU facilities, the European Financial Stabilisation Mechanism (EFSM) and the European Financial Stability Facility (EFSF), should be extended. For the EFSF, maturities will now be a minimum of 15 and up to 30 years.

The repayment of the loans from the IMF commences in 2015, and that for the EU loans we have received from the EFSM and the EFSF also commences in 2015.

In the case of the bilateral loans from the UK, Sweden and Denmark, repayment is due 71⁄2 years after each drawdown.

In relation to the schedule of the current interest rate being charged to Ireland on all forms of funding under the EU/IMF Programme of financial support, the following table supplied by the NTMA, provides the information for all amounts outstanding as at 30 April 2012.