Government Bond Issues

Thursday, 21 November 2013

Questions (55, 57)

Michael McGrath

Question:

55. Deputy Michael McGrath asked the Minister for Finance if any sales of the Exchequer bonds issued to replace the Irish Bank Resolution Corporation promissory note have been made by the Central Bank of Ireland to date; the amount of the proceeds of the sale; the actions taken by the Central Bank of Ireland following any sale; if the intention is still for the Central Bank to sell the bonds as soon as possible; and if he will make a statement on the matter. [50028/13]

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Michael McGrath

Question:

57. Deputy Michael McGrath asked the Minister for Finance the actions the Central Bank of Ireland will take following the sale of Exchequer bonds issued to replace the Irish Bank Resolution Corporation promissory note; the impact the sales of such bonds have on the State’s debt profile and income from the Central Bank surplus; and if he will make a statement on the matter. [50030/13]

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Written answers

Minister for Finance

I propose to take Questions Nos. 55 and 57 together.

The Central Bank has indicated that the portfolio of Government bonds now held by the Bank following the liquidation of IBRC will be sold as soon as possible, provided conditions of financial stability permit. The Bank has, however, undertaken that a minimum amount of bonds will be sold in accordance with the following schedule: to end 2014 (€0.5bn), 2015-2018 (€0.5bn p.a.), 2019-2023 (€1bn p.a.), 2024 and after (€2bn p.a.). The Bank normally reports in detail on its balance sheet only at annual intervals although it also publishes a more aggregate balance sheet on a monthly basis. While the latter does not contain details of its investment holdings, I have been advised that, in its Annual Report for 2013, the Bank will report on any progress towards the 2014 €0.5 billion minimum sales target. The issue of proceeds from the disposals and its impact on profit distribution is a matter for the Central Bank of Ireland.