Michael McGrath (Cork South Central, Fianna Fail)
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151. To ask the Minister for Finance the State exposure to the Schuldschein bond market; if the Central Bank is gathering data in regard to credit levels here linked to this specific market; the amount of credit held in Schuldschein bonds; the amount of credit that was held in each of the past five years; the amount of credit that is held by State-supported banks; the amount of credit held by the construction sector; his views on this type of bond product; and if he will make a statement on the matter. [7433/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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Schuldschein are a German instrument of loans issued against borrowers’ notes. As such they are not securities quoted on an exchange but are private placements, issued under German law and are usually held to maturity. The NTMA has advised me that it does not purchase Schuldschein but does issue Schuldschein on occasion. At present there is €602 million outstanding in Exchequer borrowings via Schuldschein. This Exchequer borrowing is part of the medium/long-term debt component of the National Debt. The last Schuldschein issued by Ireland was in 2010.

The National Development Finance Agency as part of the NTMA have confirmed to me that as part of our existing PPP programme the State has no exposure to Schuldschein bonds. To be specific they were not used to finance the Schools Bundle 5 PPP project where Carillion was part of the Inspiredspaces PPP Company consortium.

AIB and PTSB have confirmed that they do not hold Schuldschein bonds as investment assets.

The Central Bank have advised me that due to statutory confidentiality obligations, the Central Bank is prevented from providing the supervisory information it receives in its role as supervisor of credit institutions.

Holdings of Schuldshein are not published in the Central Bank’s regular statistical series.