Tuesday, 26 February 2013

Questions (185)

Colm Keaveney

Question:

185. Deputy Colm Keaveney asked the Minister for Finance if it is possible for the European Central Bank, acting unilaterally, to direct the Central Bank of Ireland to dispose of the long term Irish bonds created to replace the promissory notes following the dissolution of the Irish Bank Resolution Corporation onto the private market; and if he will make a statement on the matter. [9627/13]

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Written answers (Question to Finance)

The Government bonds now held by the Central Bank following the liquidation of IBRC will be placed in the trading portfolio of the Central Bank, and these bonds will be sold as soon as possible, provided conditions of financial stability permit. The Central Bank of Ireland is responsible for financial stability considerations. I would expect the Central Bank to take full account of the health of the domestic and international banking system, the global economic situation and developments in markets when considering financial stability considerations in relation to the disposal of these Irish government bonds. The Central Bank has undertaken that a minimum of bonds will be sold in accordance with the following schedule: €0.5bn by the end of 2014, €0.5bn per annum from 2015 to 2018, €1bn per annum from 2019 to 2023 and €2bn per annum from 2024 onwards.