Dáil Éireann Debate, Wednesday - 13 February 2013
52. Deputy Pearse Doherty asked the Minister for Finance further to the announcement by the National Asset Management Agency on 7 February 2013, if he will provide an assessment of the merit in directing NAMA to acquire all legacy loans at the Irish Bank Resolution Corporation today. [7719/13]
View answerThe recent enactment of the IBRC Act 2013 together with the replacement of the Promissory Notes with a portfolio of Irish Government Bonds puts in place a permanent, finite and viable solution in terms of a significant portion of the shortfall in banking financing that has emerged through the Irish financial crisis. Following an independent valuation process, the Special Liquidators will sell the assets of IBRC (which are subject to a floating charge which secures IBRC debt to the Central Bank which will be sold to NAMA) to third parties at or above their independent valuation and failing that the Special Liquidators will sell the assets to NAMA at their valuation price. The measure has the further advantage of achieving efficiencies by housing all legacy assets in one vehicle. Government took the view that it made little sense at this point to retain two State organisations performing broadly similar functions and that, in the interests of costs and efficiency, it was appropriate for NAMA to purchase the assets of IBRC.
