Lucinda Creighton (Dublin South East, Independent)
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52. To ask the Minister for Finance if he will estimate the total annual savings to the State under debt servicing costs if the interest charged on Ireland's EFSF, EFSM and bilateral loans to the UK, Denmark and Sweden were reduced by 0.5%; if he will provide an estimate of the total annual savings to the State under debt servicing costs from the first year of maturity of the EFSF, EFSM and bilateral loans to the UK, Denmark and Sweden if an extension of maturities to 50 years were provided on all these loans; and if he will make a statement on the matter. [7041/14]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the NTMA that a reduction of 50 basis points in the interest rates charged by the EFSF, EFSM, UK, Sweden and Denmark would result in savings on debt service costs of €5 million per annum for every one billion euro outstanding during any particular year.  However, it should be noted that the Government has already negotiated the removal of the interest rate margins on the EFSF, EFSM and UK loans to Ireland which, taken together, account for nearly all of the EU programme debt. Therefore, any cut to the interest rate from these lenders would result in an interest rate below their respective cost of funds and in effect represent a subsidy to Ireland.

The NTMA also inform me that an extension of maturities to 50 years on all EFSF, EFSM and bilateral loans from the UK, Sweden and Denmark may result in debt service savings to the extent that the interest rate on these loans would be below the replacement interest rate costs when they eventually mature over the coming years and decades. However, it is not possible to give a meaningful estimate of the replacement interest rate costs due to the protracted period of time involved and it should be noted that in general terms the EFSF and EFSM are currently in a position to borrow money at lower interest rates than Ireland can independently borrow at for similar maturities.