IBRC Liquidation

Tuesday, 30 April 2013

Questions (152)

Gerry Adams

Question:

152. Deputy Gerry Adams asked the Minister for Finance further to a meeting of the Committee of Public Accounts of 7 March 2013 (details supplied) if he will give details of the liquidation process of Irish Bank Resolution Corporation and the participation of NAMA in the process; if he will clarify whether it is the case that NAMA is required to bid at the independent valuers valuation of the loan book if nobody pays more or whether it is the case that NAMA will bid higher than the independent valuers valuation even if there are third party bids at the independent valuers price if it is felt that more value for the State can be attained through winding the assets down or running them off in a longer period; and if he will make a statement on the matter. [19866/13]

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Written answers

Minister for Finance

As was published by my Department in the Q&A document on the Promissory Note transaction on the 7th February last (http://www.finance.gov.ie/documents/publications/other/2013/qaupdate.pdf), third parties, including loan counterparties and other financial institutions, will be given the opportunity to bid for specific portfolios as part of an open and transparent sales process. If acceptable bids equal to or in excess of the independent valuation are not obtained, these portfolios will be sold to NAMA at the value determined by the independent valuation exercise until the IBRC debt to NAMA is repaid. NAMA will not offer a price in excess of this valuation in any case. This process will ensure that the long-term value of the assets is received and a fire sale of assets will not occur.