Dáil Éireann Debate, Thursday - 21 November 2013
54. Deputy Michael McGrath asked the Minister for Finance the amount of interest payable in 2013 and 2014 on the Exchequer bonds issued to replace the Irish Bank Resolution Corporation promissory note; the amount of this interest that is likely to accrue to the Central Bank of Ireland; and if he will make a statement on the matter. [50027/13]
Amharc ar fhreagraThe National Treasury Management Agency (NTMA) issued eight new Floating Rate Treasury Bonds to the Central Bank of Ireland (CBI) on 8 February 2013 to replace the Promissory Notes previously held by IBRC.
The bonds have maturities ranging from 25 to 40 years and pay interest every six months – in mid-June and in mid-December – based on the six-month Euribor interest rate plus an interest margin which averages 2.63% across the eight issues.
Total cash interest on the floating rate bonds this year will be just under €0.65 billion. Interest payable in 2014 has been estimated to be approximately €0.2 billion higher than in 2013, due primarily to the fact that a full year’s interest is payable next year.
To the extent that the CBI is the holder of the bonds, interest payable will accrue to the CBI.
The CBI has undertaken that bonds to the minimum value indicated will be sold in accordance with the following schedule: €0.5 billion to end-2014, €0.5 billion per annum in 2015-2018, €1 billion per annum in 2019-2023 and €2 billion per annum from 2024 onwards.
