Dáil Éireann Debate, Wednesday - 15 January 2014
121. Deputy Michael Healy-Rae asked the Minister for Finance the reason the only people who can get write-offs from the Irish Bank Resolution Corporation are those with large property portfolios; and if he will make a statement on the matter. [1035/14]
View answerI have been advised by the Special Liquidators that they are not writing off the debts of borrowers with large portfolios but are engaged in a sales process which is designed to achieve the maximum return for all creditors in the liquidation including the State.
The sales process plan and timeline has been developed following professional advice and in light of requirements of a robust and credible sales process. The Special Liquidators have also corresponded with all IBRC borrowers providing them with an opportunity to make written representations on the method of disposal of their loans and the criteria for determining who may bid for loan assets. Consideration was given to Borrower representations and the Special Liquidators have responded to these Borrower representations.
The IBRC loan books have been divided into portfolios and subsequently subdivided into tranches depending on the professional advice obtained for ensuring that the maximum value is obtained for the sale of the Loan Assets. All loans are being valued and then sold.
I am advised by the Special Liquidators that the decision to offer the residential mortgage book in portfolios was arrived at having regard to the scale of the process and size of the IBRC loan book. Furthermore the Special Liquidators have confirmed that the decision to sell these loans as part of a portfolio is the most efficient method of disposal and the one which is most likely to maximise ultimate sales realisations for the Special Liquidators having regard to the public interest. The decision concerning how the loans will be packaged for sale and what bidders constitute qualifying bidders for the purposes of the sales process is to be made by the Special Liquidators and I will not intervene in this matter.
The Special Liquidators are continuing the orderly and efficient wind-down of IBRC in accordance with the provisions of the IBRC Act 2013 and instructions that have been provided to the Special Liquidators by me under the IBRC Act 2013.
