Denis Naughten
Question:131 Mr. Naughten asked the Minister for Finance the value of Government bonds which are due to be redeemed in the year 2002; and if he will make a statement on the matter. [32237/01]
Written Answers. - Government Bonds.
Denis Naughten
Question:132 Mr. Naughten asked the Minister for Fin ance the value of Government bonds released in each of the past five years. [32238/01]
I propose to take Questions Nos. 131 and 132 together.
A total of 4,960 million, £3,906 million, in Government bonds and medium and long-term loans are due to be redeemed in 2002. This maturing debt will be refinanced by the issue of new debt.
The value of bonds issued over the last five years is as follows: 1997: 4,068 million (£3,204 million); 1998: 2,411 million (£1,899 million); 1999: 1,728 million (£1,361 million); 2000: 969 million (£763 million); 2001: Debt maturing this year is being refinanced primarily through the issuance of short-term debt. The details of the exact sources of the 2001 refinancing will be made available in early January 2002.
It should be noted that the NTMA carried out a securities exchange programme in 1999. This involved the exchange of outstanding bonds with high interest coupons for new bonds with lower interest coupons close to market rates. The purpose of the programme was to make Irish Government bonds more competitive in the post EMU environment. The programme increased the nominal value of the National Debt by 3,428 million, £2,700 million. This rise was offset by a drop in interest costs and the overall effect was to leave the market value of the debt unchanged.
Of course, the amount of bonds issued in a particular year is not an indicator of the change in the level of the National Debt in that year. The change in the level of the National Debt is a function of a number of factors, primarily each year's Exchequer balance. At end 2000 the debt stood at 36,511 million, £28,755 million, compared with 37,979 million, £29,911 million at end 1996. The end 2000 figure includes the effect of the securities exchange programme referred to above without which the figure would be 3,428 million, £2,700 million, lower.