Written answers
Tuesday, 22 June 2021
Department of Rural and Community Development
State Bodies
Noel Grealish (Galway West, Independent)
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663. To ask the Minister for Rural and Community Development the State agencies, organisations or boards under the responsibility of her Department or that receive funding from her Department that have been charged interest for savings on deposit in Irish banks since negative interest rates were introduced; the amount of interest that has been charged to each State agency, organisation or board; and if she will make a statement on the matter. [33319/21]
Heather Humphreys (Cavan-Monaghan, Fine Gael)
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In respect of the Charities Regulator and Water Safety Ireland neither organisation incurred any interest charges for savings on deposit in Irish banks since negative interest rates were introduced.
Details are outlined below on bodies under the responsibility of my Department that have been charged interest for savings on deposit in Irish banks since negative interest rates were introduced:
Western Development Commission
WDC has incurred €61,711.85 since the inception of negative interest rates on accounts in 2018; this includes bank accounts held by the Western Investment Fund. The summary breakdown per annum is included below:
Summary Negative Interest Rates to June 2021
| 2018 | 2019 | 2020 | 2021 | Total |
|---|---|---|---|---|
| €11,552.21 | €8,709.87 | €16,618.94 | €24,830.83 | €61,711.85 |
Pobal
The table below identifies the interest costs charged to Pobal since negative interest started being applied from February 2017 and notes on the figures.
These are full year costs to the end of 2020.
| Year | 2017 | 2018 | 2019 | 2020 |
|---|---|---|---|---|
| Interest Charged | 102,576.78 | 161,262.80 | 132,312.04 | 201,792.30 |
Note:
- Negative Interest started being charged to Pobal from March 2017 relating to the month of February 2017, i.e. a month in arrears at a rate of -0.40%.
- Negative interest incurred increased from 2017 to 2018. This is because there was a full year charged in 2018. Also, some programmes had expanded in 2018 resulting in more funds being on hand (RSS, AIM and ECCE).
- It reduced in 2019 as a result of holding less funds on hand and measures undertaken by Pobal to reduce the level of negative interest charged.
- It increased in 2020 due to Departments frontloading of funds when the Covid-19 pandemic started.
- In 2020 the negative interest charge was increased to -0.65%.
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