Dáil Éireann Debate, Tuesday - 27 November 2012
235. Deputy Pearse Doherty asked the Minister for Finance if as part of Irish Bank Resolution Corporation internal review of historical interest rate settings,the bank is reviewing interest rates applied to loan accounts in the UK and if IBRC has set aside money for repaying customers with loan accounts in the UK. [52731/12]
View answer236. Deputy Pearse Doherty asked the Minister for Finance if he or Irish Bank Resolution Corporation are assured by the internal review of historical interest rate settings that Anglo Irish Banks Treasury Department (UK) was not overstating the London Interbank Offered Rate rate in the years under review or in any years beyond those under review. [52732/12]
View answer237. Deputy Pearse Doherty asked the Minister for Finance if as part of its internal review of historical interest rate settings, if the Irish Bank Resolution Corporation is reviewing interest rates applied to loan accounts in any jurisdiction after 2004. [52733/12]
View answerI propose to take Questions Nos. 235 to 237, inclusive, together.
I have been advised by IBRC that the review of historical interest rates applied to loan accounts, which was disclosed in the Bank’s annual report of December 2010, covered loans advanced to customers in Ireland, USA, Isle of Man and the UK in the period from 1990 to 2005. The total cost of refunds for all jurisdictions is estimated at €45m to €50m. The Bank is satisfied that the overcharging that was identified and disclosed in 2010 ceased in July 2004 for loans advanced in Ireland, USA and the Isle of Man. In respect of loans advanced in the UK the Bank is satisfied that the overcharging ceased in January 2005.
