asked the Minister for Finance the interest rate at which State and semi-State companies can borrow money under Government guarantee; and the best available rate on the open money market.

There is no one rate of interest at which State companies can borrow money. The rate varies, depending on the commercial status of the organisation and also on whether the borrowing is undertaken in Irish or foreign currency, the type of borrowing, fixed or floating rate, the borrowing instrument used, as well as the repayment terms required.

In general, a ministerial guarantee will enable State companies to borrow on more attractive terms than could be achieved without such guarantee. Recent experience suggests however that prime State borrowers with a good commercial record can borrow without ministerial guarantee at an extremely competitive cost.