Dáil Éireann Debate, Wednesday - 17 September 2014
192. Deputy Ruth Coppinger asked the Minister for Finance his anticipated repayment schedule for the debt formerly in the form of promissory notes; the anticipated cost in interest payments and the total repayment cost as currently projected; and the preferences of the European Central Bank in this regard. [33044/14]
View answerSubsequent to the liquidation of Irish Banking Resolution Corporation the Central Bank acquired €25 billion of Floating Rate Notes (FRNs) and €3.46 billion of Government Fixed Coupon 2025 bonds. The Bank undertook to sell the combined portfolio of the FRNs and the fixed rate bond as soon as possible provided the conditions of financial stability permit. The Bank also indicated that, as a minimum, it will make sales in accordance with the following schedule: to end 2014 (€0.5 billion), 2015-2018 (€0.5 billion per annum), 2019-2023 (€1 billion per annum), and 2024 on (€2 billion per annum until all bonds are sold). The Bank's 2013 Annual Report notes that sales have been made from this combined portfolio, with the Bank selling €350mn of its holdings of the Government 2025 Fixed Rate Bond in 2013. The timing of the sales is a matter for the Central Bank which may elect to sell bonds at a particular time if it feels that this is the best course of action, for example, in order to take advantage of favourable market conditions.
