Introduction to IRELAND Ireland is one of the smallest and most open countries in the Eurozone. Exports and imports make up around 200% of its GDP. Thanks to an attractive fiscal and regulatory environment, a skilled English-speaking workforce and access to EU markets, the country attracts numerous foreign multinationals (especially in the pharmaceutical, information & telecommunication and electronics industries) which export huge volumes of high value-added finished products to the rest of the world. With only 4.5 million inhabitants, Ireland generates one of the largest trade surpluses of world, excluding oil and gas exporters. From mid-1990 s to the 2008 financial crisis, Ireland experienced a period of formidable economic expansion, for which it has won the nickname of Celtic Tiger, but this boom was achieved at the cost of excessive distortions. Euro area membership provided easy access to cheap credit which fuelled a rapid growth of the construction sector. Real estate asset prices soared. The housing bubble burst in 2007, provoking a sharp drop in output and the collapse of the banking sector. The state had to inject nearly 40% of GDP into the most fragile institutions, devastating public finances and forcing the country to ask for an EU-IMF rescue plan in late 2010. Overall, the implementation of the programme was a success. Authorities embarked on an ambitious fiscal consolidation programme while the flexibility of the economy allowed competitiveness to be restored quickly. Ireland regained access to the capital markets in mid-2012. Despite the volatility linked to the Ireland s openness and the presence of numerous multinationals, the recovery has appeared to be well anchored since late 2013. Nevertheless, risks remain. In particular, the burden left by a decade of private sector exuberance (booming private debt and construction sector) is still heavy and reinforces the structural vulnerability of the Irish economy to changing global demand. On top of that, the depth of the links with the UK makes Ireland particularly vulnerable to the consequences of Brexit and the new relationship between the EU and the UK. Summary BNP Paribas presence BNP Paribas is located in the IFSC and has been active in Ireland since 1973. BNP Paribas is the only non-retail bank with direct access to the local electronic and paper clearing systems. BNP Paribas has built up a formidable reputation in supporting the cash management and trade finance needs of both corporations headquartered in Ireland and subsidiaries of foreign multinationals. Working with BNP Paribas BNP Paribas provides a comprehensive domestic and international payments, collections, cash management and international trade finance offering in Ireland. As one of only six direct participants in the local clearing system, BNP Paribas plays a significant role in the Irish market, and specialises in providing clearing services for other banks and credit unions and correspondent banking. This gives BNP Paribas a major advantage over other banks operating in Ireland due to the scale and robustness of its transaction processing capabilities. The bank has leveraged these skills and infrastructure to establish a SEPA processing hub in Ireland, which is a unique capability from which corporate customers can also benefit. For example, BNP Paribas is able to provide same-day value on SEPA Credit Transfers. The bank's Dublin-based trade finance centre also provides a base for the Utexam franchise represented by two key trading companies: Utexam Logistics Ltd and Utexam Solutions Ltd, which manage all the bank's inventory management transactions globally.
Currency Currency Ireland uses the euro (EUR). Bank accounts Resident / non-resident status A company is generally considered resident in Ireland if its place of effective management is located in Ireland. Bank accounts for resident entities Inside Ireland Outside Eurozone Local Currency Foreign Currency Bank accounts for non-resident entities Inside Ireland Outside Eurozone Local Currency Foreign Currency Not applicable. Payments & Collections Credit transfers Credit transfers are used by companies to pay salaries and suppliers, and to make tax and treasury payments. SEPA credit transfers can be settled via STEP2 or via correspondent banking networks. Approximately 194 banks in Ireland participate in the SEPA credit transfer scheme.
High-value and urgent domestic and cross-border (within the euro zone) credit transfers can be settled in real time via TARGET2-IE. High-value and urgent cross-border payments can also be settled with end-of-day value via the Euro Banking Association s EURO1 system. Two banks in Ireland participate directly in EURO1. Cross-border transfers can be made via SWIFT and settled through correspondent banking and bank branch networks. In November 2017, the European Payment Council s SCTInt scheme (a pan-european 24/7 instant payment scheme for SEPA credit transfers) will go live across all SEPA countries. The scheme will enable the transfer of funds (the maximum threshold value for SCTInsts will be EUR 15,000) to another account in less than ten seconds. Direct debits Direct debits are used for regular payments, such as utility bills. SEPA direct debits can be cleared and settled on a same-day basis via STEP2. Liquidity management Domestic: notional pooling Domestic notional cash pools are available and offered by Ireland s largest banks. Resident and non-resident accounts can participate in the same notional pool structure, as can different legal entities. Participating entities must be considered as separate legal entities. Domestic: cash concentration Domestic cash concentration structures are widely available. Commonly used structures include zero-balancing, target-balancing and threshold-balancing. Resident and non-resident bank accounts can participate in the same cash concentration structure, as can different legal entities. Cross-border notional pooling Cross-border notional cash pools are available and offered by Ireland s larger banks. Resident and non-resident bank accounts can participate in the same cross-border notional pool structures, as can different legal entities. Participating entities must be considered as separate legal entities. Cross-border cash concentration Cross-border cash concentration structures such as zero-balancing are available. Resident and non-resident bank accounts can participate in the same cross-border cash concentration structures, as can different legal entities. Ireland is a popular location for central treasury units due to its relaxed regulatory environment and low taxation.
International trade General trade rules As a member of the European Union (EU), Ireland follows the EU customs code and applies all associated regulations and commercial policies. Trade with other countries in the European Economic Area and Switzerland is exempt from tariffs and other controls. Imports / exports Imports Data processing equipment Other machinery and equipment Chemicals Petroleum and petroleum products Textiles Clothing USA (14.0%) France (10.2%) Germany (9.3%) Netherlands (4.9%) China (4.1%) Primary Import sources UK Exports Machinery and equipment Computers Chemicals Medical devices Pharmaceuticals Food products Animal products Export markets USA UK Belgium (13.2%) Germany (6.6%) Switzerland (5.5%) France (4.4%) Netherlands (4.4%) (32.5%) (23.7%) (13.8) Import / export volumes Exports Imports 2012 2013 2014 2015 2016 - goods 119,321 116,091 151,785 216,864 205,956 - services 107,041 118,405 133,372 134,802 146,607 - goods 63,628 66,101 94,034 94,258 92,089 - services 111,955 117,704 144,956 167,339 191,837 + 4.1 + 6.1 + 3.6 + 4.4 + 4.9 Current account as % GDP Sources: IMF, International Financial Statistics and Central Statistics Office, Ireland, June 2017. Market data updated as of 01-08-17