Wednesday, 27 February 2013

Questions (63)

Pearse Doherty

Question:

63. Deputy Pearse Doherty asked the Minister for Finance following the Irish Bank Resolution Corporation Act and the appointment of a special liquidator to resolve IBRC's balance sheets, the way the liquidator will deal with outstanding loans to the company; the way the liquidator will approach the outstanding issue of loans that are secured against mortgaged properties, where the property owner has arranged a debt write down with their bank following a sale; his views on whether the liquidator should allow property sales to go ahead and loans to be separated out from properties and repaid to the liquidator, or whatever asset manager is eventually appointed, on their own. [10475/13]

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Written answers (Question to Finance)

I am advised by the Special Liquidators that any properties for sale where the sales contract has not been signed will be included in the valuation process as set out in the IBRC Act. No property will be sold unless the bid is equal to in excess of the independent valuation that is to be obtained as part of that process. The contractual terms and conditions of mortgage customers will not change as a result of the appointment and all debts owing to IBRC (In Special Liquidation) remain due and enforceable. I have been advised that it is the intention of the Special Liquidators to package and sell the mortgage book as a portfolio. Borrowers, third parties and other financial institutions will be given the opportunity to bid for specific portfolios (or component parts thereof) as part of an open and transparent process. As this sales process has not yet commenced, the Special Liquidators are not in a position to comment or speculate on the impact this may or may not have on the borrowers concerned or the arrangements that may or may not be agreed with the eventual purchasers of those assets.