To ask Her Majesty's Government, further to the Written Statement by Lord Sassoon on 11 June (WS 120), what are the current, past and proposed rates of interest charged on the bilateral loan to the Republic of Ireland, the repayment arrangements, and the current interest rate charges the United Kingdom is paying on the markets for loans.
The interest rate on the UK bilateral loan to Ireland is as set out in the loan agreement the Financial Secretary to the Treasury deposited in the Library of the House in January 2011. The rate of interest currently applicable to each tranche of the loan is equal to the 7.5 year sterling swap rate, plus a margin of 2.29%.
The Financial Secretary to the Treasury announced on
This is subject to the loan agreement being revised to reflect the new rate. Once the loan agreement has been revised, the new interest rate will apply retrospectively to those tranches of the loan already disbursed. The Financial Secretary has committed to update Parliament once the revised loan agreement has been signed and finalised.
The bilateral loan to Ireland is drawn in eight tranches, each with a 7.5 year term and with repayment of principal in full at the maturity date.
In the six months to