Tuesday, 19 February 2013

Questions (281, 282, 283, 284)

Pearse Doherty

Question:

281. Deputy Pearse Doherty asked the Minister for Finance if he will confirm that the Special Liquidator of Irish Bank Resolution Corporation will sell loans to the original borrowers at a discount to the amounts outstanding on such loans. [8755/13]

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Pearse Doherty

Question:

282. Deputy Pearse Doherty asked the Minister for Finance if he will confirm that the Special Liquidator of Irish Bank Resolution Corporation will sell loans to the original borrowers at a discount to the amounts outstanding on such loans, even in circumstances where such loans are in default or in breach of the terms of the loan, including loan to value covenants. [8756/13]

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Pearse Doherty

Question:

283. Deputy Pearse Doherty asked the Minister for Finance if he will confirm the criteria the Special Liquidator of Irish Bank Resolution Corporation will use in deciding whether or not to sell loans now, or to allow such loans to be transferred to the National Asset Management Agency. [8757/13]

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Pearse Doherty

Question:

284. Deputy Pearse Doherty asked the Minister for Finance if he will confirm the manner in which the Special Liquidator of Irish Bank Resolution Corporation will sell loans; if there will be a tender for panels of loan sales advisers and if so, when such a tender will be issued. [8758/13]

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Written answers (Question to Finance)

I propose to take Questions Nos. 281 to 284, inclusive, together.

As the Deputy will be aware, on 7 February 2013 the Oireachtas passed legislation (Irish Bank Resolution Corporation Act 2013), appointing joint Special Liquidators to IBRC with immediate effect to wind up its business and operations. It is too early in the process to speculate on the potential financial outcome of the liquidation process, however I can confirm 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 (including loan counterparties and other financial institutions) 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.