Funding and Debt Management

Ireland continued its engagement with the international debt markets in 2013 and maintained an active investor relations programme in advance of its successful exit from the EU/IMF Programme of Financial Support at the end of the year. Having initially re-entered the debt markets in 2012, the NTMA executed two bond syndications in 2013. These syndications saw an increasing number of investors return to the Irish Government bond market and raised a total of €7.5 billion. Regular auctions of short-term Treasury Bills, which resumed in July 2012, continued through 2013 with eight auctions during the year. In January 2014 the NTMA raised €3.75 billion from a syndicated sale of a 10 year new benchmark bond – its first capital market transaction since the end of the EU/IMF programme – and made a full return to the markets with the resumption of regular bond auctions in March 2014.

Market Review

Irish Government bonds have enjoyed a sustained rally since July 2011 when 10-year yields peaked at over 14 per cent and 2-year yields peaked at over 22 per cent. The fall in yields continued during 2013 and into 2014 reaching historical lows.

The factors behind the rally in Irish bonds include:

• Ireland’s consistent delivery on its EU/IMF programme commitments and adherence to all quantitative fiscal targets;
• The general reduction in yields in the eurozone since the announcement of Outright Monetary Transactions (OMT) by the ECB in the third quarter of 2012;
• The promissory note arrangement, whereby Irish Government bonds were issued to the Central Bank of Ireland and the promissory notes previously held by Irish Bank Resolution Corporation (IBRC) were cancelled. This has positive implications for the State’s funding requirements and for the General Government Balance and the General Government Debt in the medium to long term;
• The improvement in Ireland’s debt profile, particularly reinforced by the maturity extensions of the European portfolio of loans under the EU/IMF programme by an average of seven years agreed in 2013;
• The return to international debt market issuance and the successful execution of two bond syndications at sustainable rates during 2013;
• The level of prefunding achieved by the NTMA;
• The successful exit from the EU/IMF programme in December 2013, without the requirement for a precautionary credit line;
• A series of credit rating upgrades during 2013 and 2014 including the upgrade to investment grade status (Baa3, positive outlook) by the ratings agency Moody’s in January 2014 followed by the further two notch upgrade to Baa1 in May 2014; and
• The syndication of a new 10 year bond in January 2014 and the return to a regular schedule of bond auctions in early 2014, the first since September 2010, prior to Ireland’s entry into the EU/IMF programme.

Source: NTMA

The positive momentum behind Irish bond yields in 2012 was sustained into early 2013 and significant declines were observed following the issuance of a new 10-year benchmark bond in March. However, in May and June 2013 volatility increased in international bond markets, driven primarily by concerns around the future path of quantitative easing policies in the US and Japan. Importantly, Irish bond yields showed less volatility in this environment than many of their European counterparts and 10-year yields finished the year at approximately 3.5 per cent. The downward trend in yields continued in early 2014, most notably following the issuance of a new 10-year bond in January and Moody’s decision to upgrade Irish Government bonds to investment grade.

10 Year Government Bond Yields 1 January 2012 to 31 May 2014

Source: Bloomberg

Funding Activity

Funding Strategy
Since Ireland entered the EU/IMF programme in November 2010 the NTMA’s working plan has been to return to the markets on a phased basis, through short-term issuance, the offering of switch terms to bond holders to encourage the lengthening of maturities and by taking advantage of opportunities to issue long-term debt. During 2013 a number of successful debt market operations were conducted, along with a regular schedule of short-term Treasury Bill auctions.

The NTMA’s intensive investor relations programme continued during 2013, helping to generate renewed interest among institutional investors in Irish Government bonds and reinforce existing investor conviction. The NTMA conducted a series of investor presentations and meetings in the US, Asia, UK, Ireland and other European countries during 2013. Additional ad-hoc presentations and meetings were also conducted throughout this period.

The NTMA’s market-based funding in 2013, combined with drawdowns of some €11 billion under the EU/IMF programme were applied to fund an Exchequer deficit of €11.5 billion, to redeem €5.1 billion of maturing Government bonds and to buy back and cancel €4.9 billion of the Treasury Bond 2014.

The NTMA maintained Exchequer cash and other short-term investments of €18.5 billion at end-2013, consistent with its stated aim of having sufficient resources on hand at the conclusion of the EU/IMF programme to cover 12-15 months of Exchequer financing needs.

Medium and Long-term Funding
2013 Issuance
In 2013 the NTMA raised €7.5 billion from two bond syndications – €2.5 billion from an existing 5-year benchmark bond and €5 billion from a new 10-year benchmark bond, its first new 10-year issuance since January 2010, prior to Ireland’s entry into the EU/IMF programme. A syndicated tap is the sale, at a pre-determined price, of additional amounts of an existing bond through a syndicate of primary dealers. This issuance added significantly to Ireland’s prefunding for 2014, which was positively received by the market and contributed to the decline in Irish yields compared to other countries.

In January 2013 the NTMA raised €2.5 billion by way of a syndicated tap of its 5.5% October 2017 bond. The funds were raised at a yield of 3.32 per cent.

Interest in the issue was broadly-based with over 200 investors submitting bids, including fund managers, banks, pension funds and insurance companies. The total bids received amounted to some €7 billion.

Thirteen per cent of the issue was taken up by domestic investors and 87 per cent by overseas investors. The overseas investors were mainly from the UK (33 per cent), Nordic countries (19 per cent), France (11 per cent), and Germany (7 per cent). Outside of Europe, North America accounted for 9 per cent and Asia just over 1 per cent.

In March 2013 the NTMA launched its second syndicated transaction of the year. This raised €5 billion through the sale of a new benchmark bond maturing in March 2023. The funds were raised at a yield of 4.15 per cent. There was strong demand for the issue, with over 400 investors submitting bids, including fund managers, banks, pension funds and insurance companies. The total bids received amounted to some €13 billion.

Eighteen per cent of the issue was taken up by domestic investors and 82 per cent by overseas investors. The overseas investors were mainly from the UK (25 per cent), Germany (12 per cent), Nordic countries (12 per cent), France (11 per cent) and other European investors (6 per cent). Outside of Europe, North America accounted for 9 per cent and Asia just over 1 per cent.

2014 Developments

In 2014 Ireland confirmed its full return to normal market funding when, following its exit from the EU/IMF programme without a precautionary credit line, it syndicated a new 10-year benchmark bond in January and followed with a series of regular bond auctions in March, April and May.

In early January 2014 the NTMA raised €3.75 billion through the syndicated sale of a new 10 year benchmark Treasury Bond maturing in March 2024. The funds were raised at a yield of 3.54 per cent.

Of the amount issued, 17 per cent was taken up by domestic investors and 83 per cent by international investors. The international investors were mainly from the U.K. (26 per cent), the Nordic region (15 per cent), Germany, Austria and Switzerland (14 per cent), and North America (14 per cent).

Investor interest was broader than the previous benchmark bond sale in March 2013. The order book included interest from some 400 fund managers, pension funds, insurance companies, banks and other investors, including some from the Middle East and Asia. Although the total order book amounted to some €14 billion, the NTMA decided to limit the size of the new bond to €3.75 billion in order to leave capacity for a series of auctions in its funding programme for the year.

In March 2014 the NTMA restarted its bond auction programme with auctions of €1 billion each in March and April and a further €750 million in May. The new 2024 Treasury Bond was offered in each auction. This resumption of regular bond auctions marked the full normalisation of Ireland’s market access.

Source: NTMA

Promissory Note Transaction

Following the liquidation of Irish Bank Resolution Corporation (IBRC) on 7 February 2013, and the agreement between the Irish Government and the Central Bank of Ireland to replace the promissory notes provided to State-owned IBRC with long-term Government bonds, the promissory notes were cancelled and replaced with eight new floating-rate Treasury bonds. A total amount of €25 billion was issued to the Central Bank with original maturities ranging from 25 to 40 years. The bonds pay interest every six months (June and December) based on the 6-month Euribor interest rate plus a fixed margin which averages 2.63 percentage points across the eight issues.

On the liquidation of IBRC the Central Bank of Ireland also acquired €3.5 billion of the Irish Government 5.4% Treasury Bond 2025 following the termination of IBRC’s market repo. The Central Bank will sell a minimum of its €28.5 billion bond holdings 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 onwards (€2 billion per annum until all the bonds are sold). As part of these minimum sales, the Bank had sold €350 million of the Irish Government 5.4% Treasury Bond 2025 by end-December 2013¹.

¹ Central Bank of Ireland Annual Report 2013

Short-term Funding

The NTMA’s Treasury Bill programme, having resumed in July 2012, continued throughout 2013 and into 2014 with regular auctions.

The NTMA also maintained its Ireland Multi–Currency Euro Commercial Paper (ECP) programme in 2013. The programme is listed on the Irish Stock Exchange. Paper is sold on a reverse-enquiry basis and prices are quoted on Bloomberg. There was €0.5 billion outstanding at end-2013 compared with €1.3 billion at end-2012.

The NTMA also issues short-term debt in the form of Exchequer Notes and Central Treasury Notes, mainly to domestic institutional investors.

Source: NTMA

Source: NTMA

State Savings
State Savings^® is the brand name applied by the NTMA to the range of Irish Government savings products offered to personal savers.

During 2013 there were net inflows of €1.9 billion into the State Savings products and at end-2013 the total amount outstanding was €18.2 billion.

An Post acts as agent of the NTMA in relation to the sale and administration of State Savings products (except Prize Bonds). The Prize Bond Company (a joint venture between An Post and the Irish financial services company Fexco) operates the Prize Bond Scheme on behalf of the NTMA.

In June 2013 the NTMA reduced the interest rates paid on State Savings products to reflect changes in the wider savings market. Further reductions were implemented in December 2013.

The rates following the reductions on 8 December 2013 were as follows:

• 3-year Savings Bond: 4 per cent fixed-rate total return (AER² 1.32 per cent);
• 4-year National Solidarity Bond: 6 per cent fixed-rate total return (AER 1.47 per cent);
• 5 ½-year Savings Certificate: 10 per cent fixed-rate total return (AER 1.75 per cent);
• 6-year Instalment Savings: 10 per cent fixed-rate total return (AER 1.75 per cent); and
• 10-year National Solidarity Bond: 30 per cent fixed-rate total return (AER 2.66 per cent);

There were also changes to the variable rate of interest used to determine the value of the Prize Bonds’ monthly prize fund. With effect from 8 December 2013, the Prize Bonds prize fund rate is 1.60 per cent. There were no changes to the variable rate on the Ordinary Deposit Account which continues to pay a rate of 0.25 per cent or the 30 day notice Deposit Account Plus which continues to pay a rate of 0.50 per cent.

² Annual Equivalent Rate

Figures may not total due to rounding.
Source: NTMA

Debt Profile

General Government Debt (GGD) is a measure of the total gross consolidated debt of the State and is the measure used for comparative purposes across the European Union.

National Debt is the net debt incurred by the Exchequer after taking account of cash balances and other related assets. National Debt is the principal component of GGD but GGD also includes the liabilities of central and local government bodies.

Unlike National Debt, GGD is reported on a gross basis and does not net off outstanding cash balances and other financial assets. While the figures in this section relate primarily to GGD, the NTMA’s responsibilities relate to National Debt only.

GGD was €202.9 billion or 123.7 per cent of Gross Domestic Product (GDP) at end-2013. The GGD/GDP ratio is projected to decline to 121.4 per cent at end-2014, aided by a reduction in previously accumulated cash balances, and to fall to 107.2 per cent of GDP by end-2018.

Debt sustainability through stabilising and reducing the debt ratio is critical to maintaining investor confidence in Ireland and, ultimately, to preserving market access. The key policy tool available to the Government to ensure debt sustainability is to run a primary budget balance (the budget balance excluding interest payments) of sufficient size to compensate for any gap between the average interest rate on the stock of debt and nominal GDP growth. The projected fall in the GGD/GDP ratio over the period to 2018 is based on the Government’s projected primary budget balances over the period as set out in the Stability Programme Update, April 2014.

As noted previously, GGD is a gross measure that does not allow for the netting off of cash balances and other financial assets. However, the Central Statistics Office (CSO) produces a measure of General Government Net Debt (net GGD)³, which is calculated by deducting from General Government Gross Debt the value of the financial assets corresponding to the categories of financial liabilities which comprise General Government Gross Debt. The CSO estimates that net GGD stood at €161.2 billion or 98.3 per cent of GDP at end-2013.

The weighted-average maturity of Ireland’s long-term marketable and official debt is estimated to have been 12.5 years at end-2013⁴: the comparable figure at end-2012 was 7.3 years. The increase since end-2012 largely reflects the issuance in February 2013 of long-term floating-rate bonds to replace the IBRC promissory note as well as the maturity extensions of Ireland’s European Financial Stability Facility (EFSF) and European Financial Stabilisation Mechanism (EFSM) loans under the EU/IMF programme by an average of seven years agreed in 2013.

³ CSO, Government Finance Statistics, April 2014
⁴ As the revised maturity dates of individual EFSM loans will only be determined as
they approach their original maturity dates, the end-2013 weighted-average maturity
figure of 12.5 years is an estimate.

*State Savings Schemes also include moneys invested by depositors in the Post Office
Savings Bank (POSB) which does not form part of the National Debt. These funds are
mainly lent to the Exchequer as short-term advances and through the purchase of
Irish Government Bonds. Taking into account the POSB Deposits, total State Savings
outstanding were €18.2 billion at end-2013.
**Of which, Exchequer cash balances and other short-term investments accounted for
€18.5 billion at end-2013.
Source: NTMA and Central Statistics Office

Source: Department of Finance (Stability Programme Update, April 2014)

Maturity Profile of Ireland’s Long-Term Marketable and Official Debt at End December 2013

*Bilateral loans were provided by the United Kingdom, Sweden and Denmark.
**EFSF loans reflect the maturity extensions agreed in 2013.
***EFSM loans are also subject to a seven year extension. It is not expected that Ireland will have to refinance any of its EFSM loans before 2027. However, the revised maturity dates
of individual EFSM loans will only be determined as they approach their original maturity dates. The original EFSM maturities are reflected above.
Source: NTMA

Debt Service Outturn

The NTMA’s primary debt management objectives are to ensure adequate liquidity for the Exchequer and to optimise debt service costs over the medium term, subject to an acceptable level of risk.

The cash interest cost of the National Debt charged on the Exchequer in 2013 was €7,324 million. The other items charged to Exchequer debt service costs were sinking funds of €625 million – this is in effect a technical charge on the current budget which is also reflected as a receipt in the capital budget – and fees and administration expenses of €134 million.

Under the wider General Government measure, interest expenditure in 2013 is estimated at €7,681 million⁵, some €559 million below the corresponding April 2013 SPU estimate.

⁵ CSO, Annual EDP Debt and Deficit, April 2014

Irish Government Bond Market

Benchmark Bonds
Ireland has 11 benchmark bonds with maturities extending across the yield curve to 2025.

Source: NTMA

The change in profile between end-December 2013 and end-May 2014 reflects the redemption of the January 2014 bond and the new issuance of the 2024 bond in January 2014.

Amortising Bonds
The NTMA has issued amortising bonds, which make equal annual payments over their lifetime, to meet the needs of the Irish pensions industry. Unlike standard bonds where the annual interest payments are followed by the repayment of principal at maturity, amortising bonds pay an equal payment each year comprising of principal and interest over their lifetime, reflecting the preference of pension schemes and annuity providers for a steady stream of income.

There are 10 amortising bonds, with a range of maturities from 2027 out to 2047, which reflect the requirements for longer term bonds by pension funds.

In addition to the original €1 billion amortising bonds sold in 2012, further bonds were sold during 2013 on a limited reverse enquiry basis. As of end December 2013 there was €1.39 billion outstanding in Irish Amortising Bonds.

Floating Rate Bonds
On 8 February 2013 the NTMA issued €25 billion nominal Floating Rate Bonds which were exchanged for the Promissory Notes held by the Central Bank of Ireland. Details of each bond are given in the table below.

Source: NTMA

Government Bond Turnover
Turnover in Irish Government bonds increased significantly during 2013, as Ireland returned to normal market issuance. Total nominal turnover, as reported by the Irish Stock Exchange, was €92.2 billion in 2013, compared to €64.7 billion in 2012. January saw the largest monthly turnover in 2013, following the €2.5 billion 2017 bond syndication.

Turnover from January to end-April 2014 was reported at €75.7 billion, an increase of over €42 billion on the same period in 2013. The increased activity in Irish Government bonds reflects improved investor appetite, normalised bid-offer spreads and regular issuance.

Source: Irish Stock Exchange

Primary Dealer System
The Irish Government bond market has a strong primary dealer group, mainly international investment banks with a global reach. The 18 primary dealers recognised by the NTMA each make continuous two-way prices in designated benchmark bonds in specified minimum amounts and within maximum bid-offer spreads. A number of stockbrokers also match client orders.

The primary dealers are:

• Barclays, London
• BNP Paribas, London
• Cantor Fitzgerald Ireland Limited, Dublin
• Crédit Agricole CIB, London
• Citigroup, London
• Davy, Dublin
• Danske Bank, Copenhagen
• Deutsche Bank, Frankfurt
• Goldman Sachs, London
• HSBC CCF, Paris
• ING Bank NV, Amsterdam
• JP Morgan, London
• Merrill Lynch International, London
• Morgan Stanley & Co International plc
• Nomura International plc, London
• Royal Bank of Scotland, London
• Société Générale, Paris
• UBS Limited, London

Cantor Fitzgerald Ireland Ltd was recognised as a Primary Dealer in July 2013.

The Primary Dealers are members of the Irish Stock Exchange, on which Irish Government bonds are listed. They have exclusive access to the NTMA’s bond auctions and may avail of repo facilities (short-term collaterised borrowing) which the NTMA provides in Irish Government bonds.

Credit Rating
Ireland currently has investment grade status with all of the main rating agencies. Fitch rate Ireland at BBB+; which is three notches into investment grade. Moody’s restored Ireland to investment grade with a rating of Baa3 and a positive outlook in January 2014. This was the first rating upgrade by Moody’s since July 2011 and was a significant move which positively influenced Irish bond prices. In May, Moody’s raised the rating by a further two notches to Baa1 which is equivalent to the current rating of Fitch. Standard & Poor’s upgraded Ireland’s sovereign credit rating to A- (from BBB+) with a positive outlook in June 2014.

*As at 30 June 2014
Source: NTMA

EU/IMF Programme of Financial Support for Ireland

The three-year EU/IMF Programme of Financial Support for Ireland, which was entered into in November 2010, officially ended on 15 December 2013, with the final Programme disbursement of €800 million, from the EFSM, received in March 2014.

Liabilities under the EU/IMF programme at end-March 2014 amounted to €68.2 billion in nominal terms. Loans from EU sources including the bilateral lenders amounted to €45.7 billion and IMF loans amounted to €22.5 billion. The estimated effective all-in euro equivalent cost of loans received under the EU/IMF programme was 3.40 per cent at end-March 2014.

* Euro equivalents are translated at the reporting date exchange rates, taking account of the effect of currency hedging transactions. The net euro amount received by the Exchequer was €67.5 billion after adjustment for below par issuance, deduction of a prepaid margin, and the effect of foreign exchange transactions.
**IMF loans are denominated in Special Drawing Rights (SDRs), an international reserve asset created by the IMF. Its value is based on a basket of four key international currencies – the euro, Japanese yen, pound sterling and U.S. dollar.
Source: NTMA

At the ECOFIN/Eurogroup meetings in April 2013, in order to support Ireland’s efforts to regain full market access and successfully exit the EU/IMF programme, Ministers agreed in principle, subject to national procedures, to lengthen the weighted-average maturity of Ireland’s EFSM and EFSF loans by 7 years.

The details of the EFSF loan extensions were agreed in June 2013. Following the agreement, the first of the EFSF loans is now due to mature in 2029. The EFSF operates a pooled system of funding whereby loans are not linked directly to issuance.

EFSM loans are also subject to a 7-year extension. However, due to the back-to-back nature of EFSM loans with bond issues, the precise revised maturity dates of individual EFSM loans will only be determined as they approach their original maturity dates, at which point a funding operation will be executed by the EFSM. It is not expected that Ireland will have to refinance any of its EFSM loans before 2027. It is possible that individual EFSM loans will be extended more than once in order to achieve the objective of increasing the weighted-average maturity.

Other Functions

In addition to its core functions of borrowing for the Exchequer and debt management, the NTMA Funding and Debt Management Directorate performs a number of other functions.

Credit Institutions (Eligible Liabilities Guarantee) Scheme 2009
In December 2009 the Government introduced a new guarantee scheme to follow the Credit Institutions (Financial Support) Scheme 2008 to provide for the guarantee of bank liabilities beyond 29 September 2010 – the Credit Institutions (Eligible Liabilities Guarantee) Scheme 2009 (ELG Scheme). The Minister for Finance appointed the NTMA as the ELG Scheme Operator.

The ELG Scheme provides for an unconditional and irrevocable State guarantee for certain eligible liabilities (including deposits) of up to five years maturity issued by participating institutions to the extent that they are not covered by the Deposit Guarantee Scheme operated by the Central Bank of Ireland.

These liabilities must have been incurred by participating institutions between the date of their joining the Scheme and the discontinuation of the Scheme. The ELG Scheme was discontinued effective from midnight on 28 March 2013.

Any liabilities guaranteed under the Scheme up to 28 March 2013 remain guaranteed until their maturities. As of the date of the discontinuation of the ELG Scheme amounts guaranteed under the Scheme totalled €75 billion. Amounts guaranteed at end-December 2013 totalled €20 billion, as debt and deposits continued to mature following the end of the Scheme.

Source: NTMA

The liquidation of Irish Bank Resolution Corporation (IBRC) on 7 February 2013 triggered claims under the ELG Scheme. The ELG Scheme (unlike the Central Bank’s Deposit Guarantee Scheme) is a claim-driven system and the NTMA as ELG Scheme Operator is managing claims submitted in respect of IBRC liabilities guaranteed under the Scheme. Further information is available on the NTMA website.

The guaranteed liabilities of IBRC comprised both bonds and eligible deposits, to the degree that they are not covered by the Deposit Guarantee Scheme. The two ELG-covered bonds were repaid in March 2013 and in total amounted to €934 million. Approximately €110 million has been paid out as of May 2014 in relation to deposit accounts. The NTMA continues to co-ordinate with the IBRC Special Liquidators on resolving outstanding claims.

IBRC Derivatives Guarantee
On 29 November 2010 the Minister for Finance put in place a Deed of Guarantee to cover certain derivatives activity undertaken by Anglo Irish Bank Corporation Limited, now IBRC (in Special Liquidation), as it sought to manage underlying interest rate and foreign currency risk within its balance sheet. As a result of the appointment of the Special Liquidators to IBRC on 7 February 2013, derivative counterparties terminated their outstanding derivative transactions with IBRC. In cases where any negative derivative valuations were not already covered by collateral at the date of termination, counterparties were entitled to submit a claim for any shortfall under the Deed of Guarantee.

In March 2013 the Government delegated to the NTMA the functions of:

1. verifying claims for payment in respect of the Deed of Guarantee made by the Minister for Finance on 29 November 2010; and
2. paying out amounts due and payable under the Deed of Guarantee.

This process has now been completed, with a total of €37.5 million paid to 10 counterparties.

Central Treasury Service
The NTMA’s Central Treasury Service (CTS) takes deposits from, and makes advances to, non-commercial State bodies, as well as local government authorities, the Health Service Executive and education and training boards. The objective is to provide these bodies with a competitive alternative to the banking sector for their treasury business and thus to make savings for the Exchequer. At end-2013 CTS loans to a total of 18 designated bodies amounted to €37.4 million. There were 166 deposits placed with the CTS in 2013, with an average balance outstanding of €29.3 million.

Dormant Accounts Fund
Under the Dormant Accounts Act 2001 and the Unclaimed Life Assurance Policies Act 2003, balances on dormant accounts with banks, building societies and An Post and the net encashment value of certain life assurance policies are remitted to the State annually to be disbursed for charitable purposes or for purposes of community benefit. The period for determining dormancy is normally 15 years since the last customer-initiated transaction. In the case of life assurance policies with a specified term, it is five years after the end of that term. The legislation guarantees the right of account and policy holders to reclaim their moneys at any time from the financial institutions.

Pending disbursement, moneys in the Dormant Accounts Fund are managed by the NTMA. The NTMA had €185.5 million under management at end-2013. €44.6 million was transferred to the Fund in 2013, while €19.5 million of previously dormant funds was reclaimed. Disbursements from the Fund amounted to €1.5 million in 2013.

Other Activities
The Funding and Debt Management Directorate also carries out the following functions:

• Provision of treasury execution services to both the NPRF and NAMA;
• Provision of treasury execution services to the Special Liquidators of IBRC for balance sheet management purposes;
• Borrowing on behalf of the Housing Finance Agency under its €6 billion Multi-Currency Commercial Paper Programme;
• Engaging in daily short-term cash management operations to regulate the level of Government cash balances at the Central Bank of Ireland. This is undertaken as part of the overall management of liquidity in the eurozone by the European Central Bank; and
• Investment of the Residential Institutions Statutory Fund.