Vol. 557 No. 1
197 Mr. R. Bruton asked the Minister for Finance his views on the latest report which he has received from the Central Bank regarding its total profits in 2002 and in 2003; and the amount which will be available for transfer to the Exchequer in 2002 and 2003. [21273/02]
The annual report and accounts of the Central Bank for the year ended 31 December 2001 was published in June of this year. The Central Bank made a profit of €563 million in 2001. It transferred €32 million to its accounting reserves and surplus income of €531million approximately was paid to the Exchequer in June of this year. This compares with an estimate of €475 million included in the budget. The increase was due to capital gains by the bank on its investment portfolio.
Total projected Central Bank receipts in 2002 are €1,136 million. This includes €605 million in projected exceptional receipts on top of the €531 million in surplus income. A sum of €240 million of this total arises from anticipated windfall profits due to the fact that the value of old Irish denominated banknotes redeemed in exchange for new Euro notes is projected to fall short of the value of Irish notes outstanding. A sum of €365 million arises from the transfer to the Exchequer of accrued profits from the issue of coin. These previously accrued to the currency reserve of the Central Bank. The new arrangements are in line with normal practice in EU member states.
The 2003 allocation is a matter for the Central Bank within the terms of the relevant legislation and will depend in large part on the surplus generated by the Central Bank in 2002.
