Michael McGrath (Cork South Central, Fianna Fail)
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106. To ask the Minister for Finance the average interest rate currently applying to each source of funds under the EU-IMF programme of assistance for Ireland; and if he will make a statement on the matter. [32451/14]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the NTMA that the position on the interest rates for Ireland's programme loans is as follows.

In relation to the EFSF, €7.2 billion of Ireland's EFSF loans are at fixed interest rates which were based on a matched EFSF bond/loan structure. As a result of changes to the EFSF's structure which removed the direct link between specific bond issues and programme countries, the balance of Ireland's disbursed EFSF loans, currently €11.2 billion, are part of a pooled system whereby all programme countries pay the same interest rate. The pooled interest rate is calculated daily and is based on the EFSF's cost of funds in managing the pool. This can be characterised as the weighted average cost of its bond and bill issuance.  As at 31 March 2014 the blended effective interest rate on Ireland's EFSF loans was 2.31%.

The effective interest rate on Ireland's EFSM loans is based on the EFSM's cost of funds when it issues bonds. As at 31 March 2014 the blended interest rate on Ireland's EFSM loans was 3.06%.

The interest rate on the United Kingdom's bilateral loan to Ireland is fixed and is based on the weighted gross redemption yield on all UK Debt Management Office (DMO) gilt issuances to the market in the six month period up to the date of the disbursement of each portion of the loan, plus a service fee of 18 basis points. As at 31 March 2014 the estimated blended euro equivalent interest rate on Ireland's UK loans including hedging costs was 1.78%.

The interest rate on both bilateral loans from the Kingdom of Sweden and Kingdom of Denmark is floating and is based on 3-month euribor plus a margin of 100 basis points. As at 31 March 2014 the interest rates on these loans were 1.34% and 1.33% respectively.

The interest rate on the IMF Extended Fund Facility (EFF) is tied to the IMF's market-related interest rate, known as the basic rate of charge. As the IMF loan is provided in Special Drawing Rights, which is composed of a basket of four currencies (USD, EUR, GBP, JPY), the interest rate is constructed from 3-month Eurepo, US and UK Treasury Bills and Japanese Government Discount Notes' rates plus a margin of 100 basis points. Borrowings of up to three times a country's IMF quota are subject to the basic rate of charge. Borrowings above three times quota attract a surcharge of 200 basis points which is in addition to the 100 basis points margin which forms part of the basic rate of charge. This surcharge increased to 300 basis points in mid-January 2014 per the IMF rules as the loan size exceeded three times the quota for more than three years after the date of the first disbursement. As at 31 March 2014 the overall estimated blended euro equivalent interest rate on Ireland's IMF loan, including hedging costs, was 4.99%.

The Deputy should note that the mixture of floating and fixed interest rates across facilities and, in the case of the EFSF within a facility, makes it difficult to compare one facility directly against another as they contain different interest rate risk profiles, currencies and maturities.  In addition, the floating interest rates quoted are at a point in time and are, therefore, subject to change depending on movements in market rates.