Banking Sector Issues

Dáil Éireann Debate, Tuesday - 30 April 2013

Tuesday, 30 April 2013

Questions (168)

Pearse Doherty

Question:

168. Deputy Pearse Doherty asked the Minister for Finance further to reports in a national newspaper that a property subject to a loan from Bank of Ireland, in which he owns 15% of the ordinary shares and €1.5bn of preference shares, was sold in January 2012 for circa STG £5 million and is now on the market with an asking price of STG £12.3 million, if he is satisfied that the sale in January 2012 maximised the return on the outstanding loan to Bank of Ireland. [20018/13]

Written answers

Minister for Finance

The Deputy is aware that I have no role in the day-to-day commercial and operational decisions of Bank of Ireland. These decisions are taken by the board and management of the institution. Notwithstanding the fact that the State is a minority shareholder in Bank of Ireland, I must ensure that the bank is run on a commercial, cost effective and independent basis to ensure the value of the bank as an asset to the State, as per the Memorandum on Economic and Financial Policies agreed with the EU Commission, the ECB and the IMF. The Relationship Frameworks with the banks provide that the State will not intervene in their day-to-day operations or their management decisions including with respect to pricing and lending decisions. These frameworks are published on the Department of Finance website at http://banking.finance.gov.ie/presentations-and-latest-documents.