Tuesday, 19 February 2013

Questions (253)

Gerry Adams


253. Deputy Gerry Adams asked the Minister for Finance if he will confirm whether the sale of Irish Bank Resolution Corporation assets as consideration for redeeming the aggregate principal of National Assets Management Agency bonds means on a net basis the total cost on the Irish State from IBRC could be higher than the €25 billion estimated by the now former chairman of IBRC Alan Dukes in October 2012 if those assets were to be sold at the aggregate principal of NAMA bonds; if he will confirm if the special liquidator will have regard for the capital provisions that were in place prior to the liquidation of IBRC in the disposal of its assets; if he will publicly detail the total nominal independent valuation of the IBRC assets in advance of the asset disposals taking place; if he will detail the gap between the capital provisions for the assets that were in place prior to IBRC’s liquidation and the total nominal value of the assets after independent valuation.; and if he will make a statement on the matter. [8282/13]

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Written answers (Question to Finance)

It is too early in the process to speculate on the potential financial outcome of the liquidation process. However, I can confirm to the Deputy that due consideration was given, in preparatory work on the liquidation of IBRC and the legislation passed earlier this month, to ensuring the best possible outcome for the Irish taxpayer. As part of the role of the liquidators, the assets of IBRC will be valued independently before being sold. Any assets not sold to third parties at or above the valuation price will be sold to NAMA at the independent valuation. This ensures a ‘floor’ price on the assets of IBRC and that where required, assets with limited sale potential can be worked through in the medium term by NAMA rather than sold at any price. The Government’s approach in this area is consistent and focused on the best outcome.

Regarding the valuation process, at this stage of the special liquidation the liquidators are engaged in intensive processes which involve inter alia, asserting control over the businesses, processes, systems and personnel of IBRC. It is important that focus is placed on assessing, reorganising and restructuring the day–to-day activities of the Bank to meet the primary objective of ensuring the purpose of the special liquidation is achieved, as this is key to ensuring that value is extracted from the liquidation.