Thursday 29 January 2015

Central Bank to pay Government €1.2bn dividend after record profit

Published 30/04/2014 | 15:00

The Central Bank building in Dame St, Dublin, which was designed by the late architect Sam Stephenson

In its annual report the Central Bank said that it made a profit last year of €1.5bn – €1.2bn of which will be paid to the State as a dividend.

The Central Bank charges banks and other institutions for loans and for the cost of supervision and has income from “investments” such as €25bn of Government bonds it holds as a result of the Anglo Irish Bank liquidation.

The Central Bank sold €350m of those bonds last year and is committed to sell a minimum of €500m this year. Despite speculation that the bank is under pressure to speed up the disposals from the European Central Bank (ECB) its Governor Patrick Honohan said there are no plans to change schedule.

The head of the Central Bank said he is concerned about low inflation across the euro area and warned that the Government must stick to fiscal targets following the exit from its EU-IMF in order to retain market support.

The European Central Bank (ECB), where the Governor Honohan is a board member “has been concerned about low inflation not only in 2014 but in the forecasts for 2015 and 2016,” he told reporters yesterday.

Speaking at the announcement of the Central Bank’s annual report Patrick Honohan said that it is important that European authorities “use all effective tools in an effective way.”

In relation to the economy here Professor Honohan said it was "absolutely crucial" that the government stick to the current fiscal targets following exit from the bailout last year.


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