Greek Government Bonds

Dáil Éireann Debate, Wednesday - 23 January 2013

Wednesday, 23 January 2013

Questions (72)

Kevin Humphreys

Question:

72. Deputy Kevin Humphreys asked the Minister for Finance if Ireland has agreed to the arrangement whereby ECB profits on the holdings of Greek bonds under the securities market programme that have been received by national central banks will be returned to the Greek Central Bank; if he will outline the process by which this will take place; the profits the Central Bank of Ireland received from this in 2012 and the projected profits in 2013; and if he will make a statement on the matter. [3189/13]

Written answers

Minister for Finance

At end-November last year, Finance Ministers of euro area Member States – the Eurogroup – agreed to a number of measures to reduce the ratio of public debt to GDP in Greece. One of the measures was a commitment by Member States to pass on to Greece an amount equivalent to the income on the Securities Markets Programme holdings of Greek Government bonds accruing to their national central bank as from budget year 2013. From an Irish perspective, however, the Eurogroup decided that Member States under a full financial assistance programme are not required to participate in this scheme for the period in which they receive themselves financial assistance. Therefore, the issue of ring-fencing part of the Central Bank’s profits in 2012 or 2013 for Greece does not arise.

Question No. 73 answered with Question No. 71.