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IBRC Mortgage Loan Book

Dáil Éireann Debate, Thursday - 18 July 2013

Thursday, 18 July 2013

Questions (136)

Michael McGrath

Question:

136. Deputy Michael McGrath asked the Minister for Finance when he expects that Irish Bank Resolution Corporation loan assets to be transferred to the National Asset Management Agency; if he will provide details of the valuation process in respect of the loans to ensure that NAMA does not overpay; and if he will make a statement on the matter. [36449/13]

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Written answers

The Special Liquidators of IBRC have been directed to procure that the valuation of IBRC’s assets is completed by 30 November 2013. This valuation is being undertaken by independent third parties in accordance with the Ministerial Instruction provided to the Special Liquidators. The Special Liquidators have appointed UBS and PWC to value different segments of the IBRC loan portfolio. For the purposes of the valuation, loan assets shall be valued using discounted cash flow analysis, taking into account the timing and reliability of cash flows, together with an appropriate discount factor to determine the value or, where appropriate, in accordance with other standard loan valuation methodologies.

There is an obligation on the Special Liquidators to ensure that the assets of IBRC are sold at a price that is equal to or in excess of the independent valuations that are being obtained. Should a bid not be received that is in excess of the independent valuation obtained, the loan asset will transfer to NAMA at the independent valuation price. The timing of such transfers, should they happen, will depend on a number of factors, including the observed demand for the assets from third parties.

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