Tuesday, 26 February 2013

Questions (203)

Pearse Doherty

Question:

203. Deputy Pearse Doherty asked the Minister for Finance if he will confirm the net asset position of Irish Bank Resolution Corporation at 30 June 2012; in view of his Department's forecast of a net cost to the Exchequer in 2013 of €1 billion in respect of IBRC liquidation for the eligible liabilities guarantee, if he will confirm the loss being recorded at IBRC between 1 July 2012 and the date on which IBRC is finally would down in 2013. [9824/13]

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Written answers (Question to Finance)

I can advise the Deputy that the net asset position and consolidated statement of financial position of IBRC at 30 June 2012 is published on page 24 of IBRC’s Interim Report 2012. The total cost of the liquidation is dependent on the value ascribed to the assets in the valuation process currently being conducted by the Special Liquidators. While claims of c.€1 billion are expected under the ELG Scheme it is too early to estimate what further costs are likely to be incurred until that process has been completed.

At this early stage of the special liquidation the Special 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 maximum value is extracted from the liquidation.