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Wednesday, 22 May 2013

Written Answers Nos. 76-79

Bank Debt Restructuring

Questions (76)

Pearse Doherty

Question:

76. Deputy Pearse Doherty asked the Minister for Finance the amount of debt written off by Allied Irish Bank, Bank of Ireland and Permanent TSB in 2010, 2011 and 2012 as a result of bankruptcies in Northern Ireland; and if he will make a statement on the matter. [24693/13]

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Written answers

I have been provided with the following information by the banks.

For commercial confidentiality reasons AIB does not publicly disclose details of bankruptcy cases in Northern Ireland or in any jurisdiction. AIB considers each person’s circumstances on a case by case basis. However, in all cases, AIB will continue to adopt an approach which best protects AIB’s financial and legal position as it seeks to recover outstanding amounts owed; Bank of Ireland’s Annual Reports provide comprehensive asset quality information, which for example can be found from page 320 in the 2012 Report. Bank of Ireland does not provide disclosures in the above-mentioned area; details of bankruptcies in Northern Ireland are not disclosed by PTSB on the basis of commercial confidentiality.

NAMA Property Rental

Questions (77)

Pearse Doherty

Question:

77. Deputy Pearse Doherty asked the Minister for Finance if he will provide an analysis of the €100-120 million per month recurring non-disposal income being reported by the National Asset Management Agency, showing commercial rental income, residential rental income and an outline of the other receipts and in respect of the commercial rental income to indicate the proportion arising from property in the State and from other jurisdictions. [24694/13]

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Written answers

I have been informed by NAMA that the average of €100 million per month recurring non-disposal income is based on its average monthly cash receipts from NAMA Debtors in respect of its acquired portfolio of loans and derivatives. The income is principally generated from rental income. NAMA does not currently report on the components of such income.

NAMA Property Sales

Questions (78)

Pearse Doherty

Question:

78. Deputy Pearse Doherty asked the Minister for Finance following the announcement by the National Asset Management Agency of the disposal of the so called Project Aspen portfolio of €810 million of loans relating to a developer (details supplied), if he will provide his assessment on the deal which involves NAMA providing staple finance and retaining a stake in the loans; if he will confirm the security NAMA now holds in the loans and if NAMA's security in the loans has been diluted as a result of the sale; and if he will confirm the overall number of NAMA disposals which have involved NAMA retaining an interest in the assets sold. [24695/13]

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Written answers

The sale of assets and loans by NAMA is an operational matter for the Board of NAMA and, as the Deputy is aware, NAMA is, in accordance with Section 57 of the National Asset Management Act 2009, subject to audit by the Comptroller and Auditor General. I do not, therefore, intend to comment on the management and outcome of individual NAMA transactions. NAMA advises that the transaction to which the Deputy refers is the first completed loan sale in which it has retained an on-going stake and that it is prepared to undertake such joint ventures where there is reasonable prospect of realising additional return for the taxpayer, whilst progressing its mandate of realising its portfolio in an orderly manner.

Outright Monetary Transaction Scheme Participation

Questions (79, 80, 81)

Pearse Doherty

Question:

79. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question No. 219 of 23 April 2013, and further to his statement on 13 May 2013 that it seems to me that if we had one more sale of Irish paper, we would be eligible for outright monetary transactions scheme, if he will outline his basis for believing this to be the case and the reason he does not believe we would be eligible for access to OMT presently. [24696/13]

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Pearse Doherty

Question:

80. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question No. 219 of 23 April 2013, and further to his statement on 13 May 2013 that we have not decided in Government yet whether we will apply or not for the Outright Monetary Transactions scheme but it is something that seems to be a mechanism that is working very well and it might be something that we would want to avail of coming out of the bailout, if he will outline the way the OMT mechanism is working and the volume and value of OMT transactions undertaken by the European Central Bank. [24697/13]

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Pearse Doherty

Question:

81. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question No. 219 of 23 April 2013, and further to the publication on 14 May 2013 by the National Treasury Management Agency of its May 2013 presentation to investors which includes the statement clarity on Ireland's eligibility for ECB’s new Outright Monetary Transactions, OMT, would be helpful to underpin sustainable market re-entry; his views on whether there is a lack of clarity on Ireland’s eligibility for the ECB’s OMT scheme. [24698/13]

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Written answers

I propose to take Questions Nos. 79 to 81, inclusive, together.

The Governing Council of the ECB made a decision to establish Outright Monetary Transaction (OMT) on 2 August 2012, and issued a Press Release on 6 September 2012 which outlined its technical features. According to this ECB Press Release, the purpose of OMT is “Safeguarding an appropriate monetary policy transmission and the singleness of the monetary policy”. In the Press Release, the ECB noted in relation to the coverage of OMT that it “will be considered for Member States currently under a macroeconomic adjustment programme when they will be regaining bond market access.” The Press Release also sets out that a necessary condition for OMT is strict and effective conditionality attached to an appropriate European Financial Stability Facility/European Stability Mechanism (EFSF/ESM) programme.

Such programmes can take the form of a full EFSF/ESM macroeconomic adjustment programme or a precautionary programme (Enhanced Conditions Credit Line), provided that they include the possibility of EFSF/ESM primary market purchases. Finally the Press Release also notes that the ECB’s Governing Council will decide on the start, continuation and suspension of OMT, following a thorough assessment, in full discretion and acting in accordance with its monetary policy mandate. The reply to PQ No 219 of 23 April 2013, to which each of the three questions refers, states clearly that the decision on whether to grant OMT or otherwise in any particular case is a matter for the ECB, which is an independent body.

My recent comments about a further sale of Irish paper were referencing primarily our progress in establishing full market access.

In relation to the NTMA, I understand its comment on clarity in relation to Ireland’s eligibility for OMT to be its assessment of the view of the financial markets that such clarity would be helpful.

All relevant options will be considered in the light of what will be appropriate for Ireland at the time of our Programme exit. The issue of our exit options has yet to be fully considered by Government and accordingly no decisions have been taken to date.

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