Tuesday, 26 February 2013

Ceisteanna (204)

Pearse Doherty


204. Deputy Pearse Doherty asked the Minister for Finance what will happen in June 2013 when the €3 billion loan from Bank of Ireland to Irish Bank Resolution Corporation, originally provided in June 2012, secured on a 2025 Government bond, falls due. [9825/13]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

As part of the transactions relating to the Liquidation of IBRC, the bond repo agreement between IBRC and Bank of Ireland was terminated on a no gain/no loss basis and the Central Bank acquired the bond.

This 2025 Irish Government bond will be placed in the trading portfolio of the Central Bank, along with the bonds acquired in exchange for the Promissory Notes. The Central Bank will sell these bonds but only when such a sale is not disruptive to financial stability. The Central Bank have undertaken that minimum of bonds will be sold in accordance with the following schedule: €0.5bn by the end of 2014, €0.5bn per annum from 2015 to 2018, €1bn per annum from 2019 to 2023 and €2bn per annum from 2024 onwards.