Dáil Éireann Debate, Tuesday - 30 April 2013
154. Deputy Gerry Adams asked the Minister for Finance further to a meeting of the Committee of Public Accounts of 7 March 2013 (details supplied) the way in which the pre-liquidation provisions based on December 2012 figures would just about break even and that the value would be about equal to the value of loans; and if he will make a statement on the matter. [19868/13]
View answerBased on the information available to the Department at the time of liquidation the best estimate was that the value of the remaining assets in IBRC would be about equal to the NAMA bonds issued to acquire the Facility Deed from the Central Bank. This should not be confused with the comments made by the former Chairman of IBRC which reflected the assumption that IBRC was to continue as originally planned which included the continued payments of interest and capital on the Promissory Notes which will not now be paid. It is far too early to predict the outcome of the valuation process, the comments made to the meeting of the Committee of Public Accounts on 7th March reflect the already heavily discounted nature of the loan book which had provisions of almost 40% as at the end of June 2012. It will not be possible to conclude for certain whether the value of the assets to be sold by the Special Liquidators is sufficient to compensate NAMA for the amount paid for the net IBRC debt that it has acquired until after the valuation of those assets has been concluded.
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 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 now, can be worked through in the medium term by NAMA rather than sold to the best available third party at any price. This approach ensures a fire sale of assets will not occur. This Government’s approach is consistent and focused on the best outcome for the Irish State and its people.
