Dáil Éireann Debate, Wednesday - 24 April 2013
79. Deputy Stephen S. Donnelly asked the Minister for Finance further to Parliamentary Question Nos. 275, 276, 277 and 278 of 16 April, 2013 if he will indicate who incurs the loss if the Irish Bank Resolution Corporation assets securing the €15bn debt purchased by the National Assets Management Agency from the Central Bank realise less than €15bn when sold; and if he will make a statement on the matter. [19461/13]
View answerAs 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. To be clear, NAMA issued Senior Bonds totalling €12.928bn to purchase the CBI’s remaining lending to IBRC under the Facility Deed. The process described above will establish if the value of IBRC’s assets are sufficient to cover the value of NAMA bonds issued. The outcome of this process will not be known, with any certainty, until the independent valuation and asset sale process has completed. If the value of the assets is insufficient to covers amounts due to NAMA then that shortfall will be compensated by the Exchequer. If the value of the assets is greater than €12.928bn then the surplus after NAMA has been paid will go to the other creditors of IBRC.
