Dáil Éireann Debate, Tuesday - 20 November 2012
197. Deputy Pearse Doherty asked the Minister for Finance if he will provide the policy adopted by the Irish Bank Resolution Corporation in which he is the sole shareholder of 100% of the shares and on the board of which he has seconded a person (details supplied), with respect to reducing rents to commercial tenants, who are facing financial distress, of buildings under the control of Irish Bank Resolution Corporation borrowers or its receivers. [51145/12]
View answerThe overriding mandate of IBRC is to maximise the recovery of loans on behalf of the State and to wind down over time. The underlying approach of the Bank is to work constructively with each borrower on an individual basis. I have been advised that the tenancy arrangements for commercial properties, financed by IBRC, are principally governed by contractual lease agreements between the borrower (or receiver) as landlord and the lessee (tenant). In circumstances where IBRC receives a request from a borrower (or receiver), to add its consent to an amendment to lease terms, agreed with the lessee, typically a payment concession in terms of a lower rent or a rental holiday, the Bank will undertake a thorough review through its multi-faceted credit processes. This will include a comprehensive assessment of the individual tenant’s financial profile and underlying business circumstances, in order to assess fully their ability to meet their existing contractual obligations. I have asked IBRC to review NAMA’s policy guidance on upward-only rent reviews to see if IBRC could implement this policy guidance or a variation of this policy guidance. I understand this matter is under consideration by the Bank. I should also note that the person referred to has not been seconded to the board of IBRC but to the bank’s senior management team as the Head of Market Solutions.
