Thursday, 3 July 2014
Department of Finance
IBRC Bond Issues
64. To ask the Minister for Finance if any, or part of any, of the €25 billion in sovereign bonds issued by the National Treasury Management Agency to buy out the remaining €25 billion promissory note debt have been sold; if so, if any of the money raised from that sale has been destroyed; if any or all of the money raised has been kept for the purposes of repaying the interests amounts that will accrue from those bonds; if the sale of the sovereign bonds has not yet taken place, if he will undertake to inform Dáil Éireann and the Irish public when any, or part of any, of those bonds have been sold; and if he will make a statement on the matter. [28956/14]
I propose to take Questions Nos. 63 and 64 together.
I have been advised by the Central Bank that subsequent to the liquidation of IBRC, the Bank acquired €25bn of Floating Rate Notes (FRNs) and €3.46bn of Government Fixed Coupon 2025 bonds. The Central Bank's Annual Report for 2013 indicates that it intends to sell the combined portfolio of the FRNs and the fixed rate bond as soon as possible, provided conditions of financial stability permit. The Bank also indicates that, as a minimum, it will sell securities in accordance with the following schedule: to end 2014 (€0.5 billion), 2015-2018 (€0.5 billion per annum), 2019-2023 (€1 billion per annum), and 2024 on (€2 billion per annum until all bonds are sold).
The Report also notes that, as part of this strategy, the Bank sold €350 million of its holdings of the Government 2025 Fixed Rate Bond in 2013.
The Central Bank is independent in the exercise of its functions and the management of its investment holdings is a matter for the bank itself. Neither I nor the Department of Finance have any role in those matters.