Michael McGrath (Cork South Central, Fianna Fail)
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81. To ask the Minister for Finance the current average interest rate earned by the National Treasury Management Agency on its cash balance; the actual average interest earned by the NTMA on its cash balance in 2012; the current average interest rate on the general Government debt; the current average interest rate on the State's Exchequer debt; and if he will make a statement on the matter. [41723/13]

Michael Noonan (Limerick City, Fine Gael)
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Exchequer cash balances are held in the Exchequer account at the Central Bank of Ireland and earn interest at the Euro Overnight Index Average (EONIA) rate. These balances are available immediately to the State. At end-September 2013 there were Exchequer cash balances of €12.5 billion. At end-September 2013 there was also €13.1 billion on hand in short-term investments, including bank deposits. The rate of return on NTMA investments is commercially-sensitive information. These investments are available to the State at short notice. In 2012, the accounts of the NTMA show that there was €129 million of interest received on deposits, including balances at the Central Bank of Ireland, and other investments.

The average interest rate on General Government debt in 2013 was estimated at 4.3% in the April 2013 Stability Programme Update (SPU). This estimate is calculated by dividing the estimated General Government interest expenditure for 2013 by the stock of General Government Debt outstanding at the end of the previous year. Using a similar methodology for Exchequer (or National) Debt and taking account of the replacement of the IBRC Promissory Notes, which were not part of the National Debt, by a portfolio of floating rate Government bonds which are, a similar interest rate was estimated for 2013 at the time of the April SPU.

I am satisfied that the NTMA manages the cash balances in a prudent manner consistent with minimising risk and always having sufficient cash on hand to cover any volatility which might arise. Finally, I would add that in view of its relatively strong funding position, the NTMA announced on Tuesday, 1 October, that it has decided to suspend its monthly Treasury Bill auctions for the final quarter of 2013. The NTMA has also decided to defer consideration of any further medium or long-term bond issuance until early 2014.