Michael McGrath (Cork South Central, Fianna Fail)
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194. To ask the Minister for Finance the amount of interest expected to be paid in 2014 on the national debt; the amount of that interest which relates to the debt burden associated with rescuing the banks; and if he will make a statement on the matter. [24709/14]

Michael Noonan (Limerick City, Fine Gael)
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The recent Stability Programme Update 2014 projected general government interest payable in 2014 at just under €8 billion.

As I outlined in my response to PQ 23246/14 recently, it is not possible to quantify that part of the debt interest bill that relates to the recapitalisation of the banks. It can only be tentatively estimated.

Of the projected 2014 general government interest bill of just under €8 billion, my Department estimates that circa €1.6 billion relates to rescue operations in the context of the financial crisis, of which around €0.8 billion relates to interest payable on the floating rate Government bonds used to replace the promissory notes in 2013. The Deputy should note that the interest payments on the floating rate bonds contribute significantly to the surplus income of the Central Bank, up to 80% of which is paid to the Central Fund in the following year.

Michael McGrath (Cork South Central, Fianna Fail)
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195. To ask the Minister for Finance the estimated national debt of Ireland at the present time; the amount of that national debt which is associated with rescuing the banks; and if he will make a statement on the matter. [24710/14]

Michael Noonan (Limerick City, Fine Gael)
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End-2013 general government debt, which is a gross measure, is estimated by the Central Statistics Office (CSO) at €202.9 billion or 123.7 per cent of GDP.

The proceeds of all borrowing as well as revenues including tax and non-tax, and capital receipts are lodged to the Exchequer account to fund general expenditure. In general terms, no specific tranches of borrowing were undertaken solely for the purpose of recapitalising the banking sector. Therefore, that part of the debt that relates to the recapitalisation of the banks can only be tentatively estimated.

The Deputy will be aware however that the IBRC promissory notes were cancelled in 2013, and replaced with a portfolio of eight floating rate Government bonds for a total amount of €25 billion.

Furthermore, the €3.06 billion Promissory Note instalment due to IBRC at end-March 2012 was settled with a Government bond.

By the end of 2013, it is estimated that €10 billion (net of the sale of Bank of Ireland equity in 2011, the sale of Irish Life and the sale of contingent capital notes in 2013) has been paid through direct payments from the Exchequer account to the banking sector*. The payment of the 2011 promissory note instalment of €3.085 billion was also made from the Exchequer account.

My Department therefore estimates the amount of debt associated with rescue operations during the financial crisis to be of the order of €41 billion at end-2013.

*This figure excludes the benefit of fees paid to the Minister under the Credit Institutions Financial Support and Eligible Liabilities Guarantee schemes amounting to €4.4 billion from 2008 to 2014. The figure also excludes any estimation of ongoing interest costs relating to rescue operations.