Dáil Éireann Debate, Thursday - 11 March 2021
46. Deputy Neasa Hourigan asked the Minister for Finance if the NTMA has reviewed the position of a company (details supplied) as a primary dealer of Government bonds against the NTMA's own criteria for primary dealers most notably the organisational resources criterion. [13686/21]
View answerThe Deputy will by now be aware of the decision by the Board of the National Treasury Management Agency (NTMA) on Monday, 8th March, to withdraw J&E Davy’s authority to act as a primary dealer in Irish Government bonds. The NTMA wishes to maintain both Ireland's reputation as a sovereign issuer in the bond market and also the orderly functioning of the market for Irish Government debt. In this context, the NTMA believes that the behaviour described by the Central Bank falls substantially short of the standards expected from market counterparties, peers and colleagues in the bond market and is potentially damaging to Ireland’s reputation as a sovereign issuer.
I am informed that the NTMA Board reached its decision based on its assessment of last week's Central Bank of Ireland findings and also as a result of engagement with investors in Irish Government debt. As such, I note and support this decision. I believe that it is the appropriate course of action in the current circumstances.
