NAMA Bonds

Dáil Éireann Debate, Tuesday - 21 May 2013

Tuesday, 21 May 2013

Questions (265)

Pearse Doherty

Question:

265. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question No. 51 of 9 May 2013, if the Central Bank of Ireland’s holding of National Asset Management Agency bonds is considered a financial asset holding with limits; if consideration has been given by him in discussions with the Governor of the Central Bank of Ireland for the Central Bank of Ireland to acquire the outstanding NAMA bonds from Bank of Ireland, Allied Irish Banks and Permanent TSB as a way of reducing the balance sheet of those banks, freeing up capital costs for those banks who have to use or hold capital to provide against the NAMA bonds, reducing the amount of ECB funding that is extended on foot of the NAMA bond collateral to those banks and return the interest payable from NAMA on these bonds directly to the Central Bank of Ireland and thus ultimately to the Exchequer; and if he will make a statement on the matter. [24251/13]

Written answers

Minister for Finance

The Central Bank of Ireland (CBI) has confirmed that, in common with other National Central Banks of the Eurosystem, it can hold financial assets only up to particular limits as part of agreements between the various members of the Eurosystem. Furthermore the CBI has confirmed that the terms of such agreements and related issues are a matter for itself and the ECB and not something that I can comment on. As outlined in my response to PQ 19874/13, the CBI has advised that it does not comment on individual investment holdings.