Mr. Frank O'Connor:

Predominately, that cash is held by the Central Bank of Ireland. That is one example. Another example is sovereign treasury bills across European jurisdictions, such as Germany, France, Belgium and an array of others, if they all fit within our credit policy. Those two examples hold the majority of it. In fact, we do a small amount of lending to other debt offices, such as overnight liquidity, etc. The Central Bank of Ireland and sovereign treasury bills are the two main components.

With regard to the return, the Deputy is absolutely right. With a cash buffer, one thing we are conscious of at any time is borrowing at higher rates and putting down a deposit at lower rates. The Deputy might remember that although we did not need the funds during quantitative easing and Covid, we decided to continue borrowing more than we needed. We prefunded the State because rates were particularly low. The Deputy might remember that, in some cases, the rates became negative. Some of that money was borrowed at 0%, 0.5% or 1%. Considering short-term interest rates are approximately 2%, the Deputy will find we have a positive contribution.

With regard to recent borrowings, we initiated a 30-year bond for the long term at approximately 3.15% earlier this year. If you were to go to the market now, you would be paying approximately 3.75%. Obviously, if those funds were borrowed at 3% and a short-term deposit is being placed until the cash is used by the Exchequer, that comes at a cost. Overall, given where we have funded everything else, the cost of carry is rather negligible or on the positive side. That changes over time, however. We are conscious of it. I always recommend having a sufficient cash buffer. It is just elevated at the moment post the Apple decision in Europe. Obviously, the Government will make decisions in due course as to how to spend that money.