Dáil Éireann Debate, Wednesday - 6 June 2012
74 Deputy Kevin Humphreys asked the Minister for Finance if he will provide a breakdown of the cash reserves held by the National Treasury Management Agency on 31 March 2012 by account and source; his views on the purpose to which those various sums are committed; and if he will make a statement on the matter. [26530/12]
Amharc ar fhreagraCash reserves and other balances held by the National Treasury Management Agency on behalf of the State at 31 March 2012 were as follows:
|
NTMA Cash Reserves/other balances |
€ billion |
|
Exchequer Account |
13.26 |
|
Capital Services Redemption Account |
0.03 |
|
Deposits |
0.55 |
|
Housing Finance Agency Guaranteed Notes |
3.86 |
|
Dormant Accounts Fund |
0.14 |
|
Other Ministerial balances |
0.74 |
|
Total |
18.58 |
The figures above include cash held in the Exchequer Account in the Central Bank, cash held by the NTMA on deposit, Housing Finance Agency Guaranteed Notes held by the NTMA, cash available in the Dormant Accounts Fund and other Ministerial funds.
The cash reserves are available for use by the State, with the exception of the Housing Finance Agency Guaranteed Notes, which are not immediately callable as they provide funding to the Housing Finance Agency.
The Exchequer Account is funded by borrowings under the EU/IMF Programme. These borrowings are for the general financing requirements of the Exchequer which include the funding of the budget deficit and the re-financing of maturing debt.
The Capital Services Redemption Account is used to record certain transactions "of a normal banking nature" related to the management of the national debt. These include transactions in foreign exchange contracts and other derivatives, receipts of deposit interest earned. The balance in the account is used to make repayments in respect of normal banking transactions or towards defraying interest and expenses on the National Debt.
The NTMA places short-term deposits from the Exchequer account as part of a daily short-term cash management operation.
The Dormant Accounts Act 2001, as amended by the Dormant Accounts (Amendment) Act 2005, provides that balances on dormant accounts in certain financial institutions be transferred to the State and disbursed for charitable purposes or purposes of societal or community benefit. The Act guarantees the right of account holders to reclaim their moneys at any time. The balances on dormant accounts, including accrued interest, are paid into the Dormant Accounts Fund which is managed by the NTMA.
The Other Ministerial balances are mainly cash balances held as part of the management of the Post Office Savings Bank Fund which can be made available as short-term funding for the Exchequer Account.
Liquidity is managed by the NTMA to ensure that the State has adequate reserves at all times to meet obligations as they fall due. Balances can vary widely depending on the timing of tax receipts, Exchequer payments, borrowings and repayments.
