16. National Loans Advance Interest Account
The Agency can cancel or issue amounts of existing Irish Government Bonds. The settlement amount for each bond transaction includes the accrued interest at that point in the coupon period. The interest paid is deposited in the National Loans Advance Interest Account until the full interest is due on the coupon date. On the coupon date, the interest is then used to offset the related servicing costs of the Exchequer.
| Account of Receipts and Payments | 2017 €000 |
2016 €000 |
|---|---|---|
| Balance at 1 January | 29,089 | 24,124 |
| Accrued Interest Received on National Loans – Tranches and Auctions | 79,178 | 35,606 |
| Accrued Interest Paid on National Loans | (62,010) | (30,641) |
| Balance at 31 December – Cash with Central Bank of Ireland | 46,257 | 29,089 |