Pearse Doherty (Donegal South West, Sinn Fein)
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To ask the Minister for Finance the amount of interest that will be paid in each of 2013, 2014 and 2015 on the sovereign bonds that replace the promissory notes;; and if he will make a statement on the matter. [7733/13]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy will be aware the Irish Government Bonds that have been issued in exchange for the Promissory Notes are floating rate bonds. The coupon on these bonds is 6-month Euribor plus a margin ranging from 2.50% to 2.68%. Given the nature of this floating rate it is impossible to be accurate with regard to the exact interest cost in 2013 to 2015. As part of the explanatory information that was released by the Department of Finance in relation to the transaction last week, estimates were produced which showed an interest expense of €750 million for 2013, €875 million for 2014 and €950 million for 2015. A copy of this presentation is available on the Department of Finance website under the following link:

It was also highlighted in this presentation that the interest costs shown were best estimates.

Pearse Doherty (Donegal South West, Sinn Fein)
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To ask the Minister for Finance the net present value of the bonds that will replace the promissory notes and the net present value gain in this arrangement;; and if he will make a statement on the matter. [7734/13]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy will know, the Promissory Notes were replaced with a portfolio of long term non-amortising Irish Government bonds as a result of undertaking last week’s transaction. The net present value of the portfolio of bonds is €25bn which is equal to the par value of the Promissory Notes that they have replaced. With regard to the net present value gain in this arrangement, as the Deputy is aware, the calculation of a net present value is based on a number of mathematical assumptions, including what discount rate to apply and assumptions around future refinancing rates, all of which will depend upon the outcome of future events. These assumptions can have a material impact on the ultimate valuation and it is subject to a wide range of possible outcomes. For that reason, the Department did not produce a net present value figure for publication last week and I am not in a position to give one now. I can assure the Deputy that a key determinant of the value of the new arrangement was debt sustainability.