Dáil Éireann Debate, Thursday - 3 October 2013
23. Deputy Kevin Humphreys asked the Minister for Finance the amount of cash reserve currently held by the State through the National Treasury Management Agency; the banks with whom that money is currently on deposit; the interest rate on each of those specific deposits; if he is satisfied that the State is getting the best return on those funds; and if he will make a statement on the matter. [41295/13]
View answerI am informed by the National Treasury Management Agency (NTMA) that the Exchequer had €25.6 billion on hand in Exchequer cash and other short-term cash management balances at the end of September 2013. Of that amount, €12.5 billion was held in the Exchequer account at the Central Bank of Ireland. The balance was held in short-term investments, including bank deposits. The State earns a return on these investments, and I am satisfied that the NTMA manages the cash balances in a prudent manner consistent with minimising risk and always having sufficient cash on hand to cover any volatility which might arise.
Balances held in the Exchequer account at the Central Bank of Ireland earn interest at the Euro Overnight Index Average (EONIA) rate. These balances are available immediately to the State. The identity of the NTMA’s investment counterparties and the rate of return on NTMA investments is commercially-sensitive information. These investments are available to the State at short notice. Finally, I would add that in view of its relatively strong funding position, the NTMA announced on Tuesday, 1 October that it has decided to suspend its monthly Treasury Bill auctions for the final quarter of 2013. The NTMA has also decided to defer consideration of any further medium or long-term bond issuance until early 2014.
