Irish investors increase Irish debt holding

Figures reflect impact of the Central Bank’s deal with Irish Bank Resolution Corp

As part of the liquidation of IBRC, the Central Bank exchanged promissory notes previously held by the former Anglo  for €25 billion in Irish government bonds. Photograph: Aidan Crawley/Bloomberg

As part of the liquidation of IBRC, the Central Bank exchanged promissory notes previously held by the former Anglo for €25 billion in Irish government bonds. Photograph: Aidan Crawley/Bloomberg

Thu, Apr 4, 2013, 07:34

Irish resident investors increased their share of long-term Irish debt to almost 50 per cent in February due to the impact of the Central Bank’s deal with Irish Bank Resolution Corp (IBRC).

As part of the liquidation of the bank, the Central Bank exchanged promissory notes previously held by IBRC for € 25 billion in Irish government bonds. As a result Ireland’s total outstanding long-term government debt increased by € 25.1 billion, or by 27.8 per cent, from January to €115.4 billion in February, according to latest figures from the Central Bank.

Of this, 45 per cent, or €51.5 billion, is held by Irish resident investors, with the Central Bank accounting for almost 95 per cent of this. Other Irish investors include general government (3.5 per cent share) and financial intermediaries (1.6 per cent).

Irish resident insurance companies and pension funds have significantly sold off their holdings of Irish debt, down from €945 million in January 2012 to just €11 million in February 2013.

Non-resident or international investors now have a 55 per cent share of Irish long-term debt, down from 72 per cent in January.