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Commercial Rent Reviews

Dáil Éireann Debate, Tuesday - 20 November 2012

Tuesday, 20 November 2012

Questions (198)

Pearse Doherty

Question:

198. Deputy Pearse Doherty asked the Minister for Finance if he will provide the policy adopted by Allied Irish Banks in which he is the shareholder of 99.8% of the shares and is responsible for the appointment of persons (details supplied) as public interest directors on that bank’s board, with respect to reducing rents to commercial tenants, who are facing financial distress, of buildings under the control of AIB borrowers or its receivers [51146/12]

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Written answers

I am informed by AIB that it is committed to operating its business activities on a commercial basis as it seeks to protect its economic interests. As such, the bank approaches each particular situation on a case-by-case basis to ensure the appropriate outcome is achieved. In the case of commercial properties, the legal relationship that exists is typically between the borrower and the commercial tenant. As such AIB does not typically have remit to intervene in this contractual relationship directly. However, where the bank does become involved in restructuring individual cases, AIB will examine and explore options with its borrowers with a view to structuring the best long-term economic outcome given current economic conditions for all parties.

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