Dáil Éireann Debate, Wednesday - 5 July 2017
58. Deputy Catherine Murphy asked the Minister for Finance the position regarding the schedule relating to the extinguishing of the floating rate treasury bond; and if he will make a statement on the matter. [31477/17]
View answerThe Central Bank publishes information in this regard in its Annual Report. In 2013, the Bank acquired eight Floating Rate Notes amounting to €25 billion as part of the exchange of assets on the liquidation of IBRC. The Floating Rate Notes form part of the Bank’s Special Portfolio. The disposal policy for this portfolio remains unchanged, with the intention being to dispose of holdings as soon as possible, provided conditions of financial stability permit. The Bank has indicated that it will sell a minimum of these securities in accordance with the following schedule:
- 2016-2018 €0.5 billion per annum;
- 2019-2023 €1 billion per annum; and
- from 2024 onwards €2 billion per annum until all bonds are sold.
The eight Floating Rate Notes acquired range in maturity dates from 2038 to 2053. The Bank has so far disposed of €7.5 billion nominal of the Floating Rate Notes; €0.5 billion in 2014, €2 billion in 2015, €3 billion in 2016 and €2 billion so far this year. On each occasion the National Treasury Management Agency (NTMA) purchased and subsequently cancelled the Floating Rate Notes. All holdings of the 2038, 2041 and 2043 Floating Rate Notes have now been disposed of. The outstanding balance of Floating Rate Notes is now €17.5 billion.
