Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I wish to revert to the Deputy's previous question because I have just got a note stating that the oil prices and energy costs that had decreased were depressing the inflation rate. As they reassert they come back into the figures, so it will go to 1.2%, 1.3% and so on. That is the explanation for the table.

On the promissory note, the way we organised the alternative to the promissory note was done on a lot of advice as to what would be legal and what would correspond to European law. We are very pleased that a few weeks ago the European Central Bank's board of governors decided that the arrangement we had made was in accordance with that and was not monetary financing. When we were negotiating it, the second issue was that the bonds which go from 25 to 40 years in duration have different maturity dates. Through the Central Bank we have agreed a schedule of sale and I think we have to sell some small amount next year. We might do that before the back end of this year. That would be always under review. The European Central Bank will always review the assets of any central bank within its remit, but we are under no pressure whatsoever. It might be in our interest as time goes by to change the profile and bring it forward.

The agreement is that we will sell in accordance with the profile, taking into account conditions of financial stability. I think I am quoting that accurately - that is the key phrase. The Central Bank always has the argument that it would be possible to affect the financial stability of a sovereign if there is a push to sell too fast.

Since the Irish paper was put into the Central Bank last year, the nominal value has gone up by about €4 billion. I am not going to take profit out of that or ask the governor to take profit out of that because we would be accused of dumping on the market to achieve fiscal correction. However, at some point in the future a profit will accrue and the point of sale will come back to the Exchequer.

To answer the Deputy's question bluntly, we are under no pressure, but we would expect the European Central Bank to review the holdings of paper which the Central Bank has under this heading and in the normal investment portfolio, and advise on its disposal from time to time. We are under no pressure, however.