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Dáil Éireann - Volume 220 - 03 February, 1966 Ceisteanna—Questions. Oral Answers. - American Loan. Mr. Ryan Mr. Ryan 6. Mr. Ryan asked the Minister for Finance the consequences to the capital programme flowing from the nonavailability of the proposed 20 million dollar loan; and the particular projects which will be delayed thereby. Minister for Finance (Mr. J. Lynch) Jack Lynch Minister for Finance (Mr. J. Lynch): The postponement of the proposed 20 million dollar loan has not necessiated any change in the capital programme. External resources have recently been provided by a borrowing from the International Monetary Fund of $22½ million and these may be drawn upon for the immediate financing of the programme. Mr. Ryan Mr. Ryan Mr. Ryan: If I understood the public statement correctly when the recent borrowing was announced, it was indicated that it had no relationship to the 20 million dollar borrowing which had previously been proposed. Can the Minister say upon what items it was proposed to expend this 20 million dollar loan, which has not been forthcoming. Mr. J. Lynch Mr. J. Lynch Mr. J. Lynch: This 20 million dollar loan was intended for the general Capital Budget and as to the suggestion that there is no relationship between the two loans, this refers to the source from which the borrowing was to be made. Mr. Ryan Mr. Ryan Mr. Ryan: Will the consequences be, then, that the Government will take another £7 million from the commercial banks in order to keep their capital programme going at the level which the Minister suggests and thereby make another £7 million short for the private sector? Mr. J. Lynch Mr. J. Lynch Mr. J. Lynch: That does not follow. Mr. Ryan Mr. Ryan Mr. Ryan: If you are going to carry out the same programme with £7 million less, you must be going to get the money somewhere else. Mr. M.P. Murphy Mr. M.P. Murphy Mr. M.P. Murphy: What are the interest rate and the terms of repayment? Mr. J. Lynch Mr. J. Lynch 900 [900] Mr. J. Lynch: In the International Monetary Fund, there is a very complicated system whereby the interest rate is worked out. The interest rate is nil on the first half of it and is cumulative on the second half. It works out to be a very cheap rate in the long run but, of course, it is for a much shorter period than the usual foreign borrowing. Mr. Dillon Mr. Dillon Mr. Dillon: Does the borrowing from the International Monetary Fund involve the hypothecation of our own gold contribution to the fund? Mr. J. Lynch Mr. J. Lynch Mr. J. Lynch: It refers to what they call the first tranche. Mr. Dillon Mr. Dillon Mr. Dillon: Does it involve the hypothecation of our gold reserves? Mr. J. Lynch Mr. J. Lynch Mr. J. Lynch: That is a matter of detail I would like to get notice of. Mr. Dillon Mr. Dillon Mr. Dillon: It is the first time we have had to shovel out gold that I can remember. Dáil Éireann 220 Ceisteanna—Questions. Oral Answers. American Loan. Questions 19660203
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