The State has divested its holdings in Israeli bonds “in the past number of weeks”, Minister for Finance Paschal Donohoe has confirmed.
He said the Irish Strategic Investment Fund (Isif) had €3.62 million invested in Israeli sovereign debt last year and “escalating geopolitical tensions and conflict” in the Middle East posed an “increased risk to assets with economic exposure to the region.
“And Isif’s view is that following the escalation of the Israel-Iran conflict in June of 2025, the current situation carried materially greater risk.”
It determined “the risk profile of a number of sovereign bond holdings in the region were no longer within its investment parameters.
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“And following this determination, Isif divested its holdings, a sovereign debt issued by Jordan, Egypt and Israel.”
The National Treasury Management Agency (NTMA) manages the fund which makes commercial investments for the benefit of the Irish economy.
Speaking during finance questions in the Dáil late on Tuesday night Mr Donohoe said “ISIF has complete independence in implementing its investment strategy” through an investment committee reporting to the NTMA’s Board.
Sinn Féin finance spokesman Pearse Doherty said it was “absolutely outrageous” that Isif invested in Israeli war bonds.
He asked the Minister if he knew that “Irish taxpayers’ money was funding a genocide”.
Mr Doherty said “Israel doesn’t hide behind this. They do not blush about this. They sell these bonds and advertise these bonds as ‘support the war effort’. But we all know that it’s not a war. We know it’s genocide,” and “it appears the investment increased during 2024, when it was at full tilt”.
The Minister replied that “the key point to emphasise is that Isif made the decision to divest of these bonds, they’re no longer hold them, and I understand this decision was made over the last number of weeks”.
Mr Doherty said the State invested money “and you can’t wash your hands of this. You’re the bloody Minister for Finance, and an organisation that falls under the remit of the department is investing in genocide, no ifs, no buts, no maybes.”
Mr Donohoe said “Isif independently decides what shares they are going to hold, what investments they’re going to make, and they do so in a way that is completely independent of me”.
He wanted to “thoroughly refute any suggestion of complicity in the appalling violence that has been inflicted upon the people of Israel. I want to again make clear, my condemnation of what is happening, as the Government already has on many different occasions”.
Mr Donohoe said “these bonds are no longer owned by ISIF and they were sold”.
Independent TD Catherine Connolly said she had received a parliamentary reply that Isif had €2.62 million in 2023 and “as the genocide continued, worsened, this State invests more money in the bonds”.
Mr Donohoe said “I do not play a role in determining the investment decisions that Isif make”. These decisions are made “independently of me”, he said.
