The Irish Bank Resolution Corporation Bill 2013 (the " IBRC Act") was passed by the Dáil on 7 February 2013. The IBRC Act provided for the winding up of IBRC in an orderly and efficient manner in the public interest. On 7 February 2013, I as the Minister for Finance, made an Order pursuant to Section 4 of the IBRC Act providing for the winding-up of IBRC under the provisions of the IBRC Act. Pursuant to the same Order, Mr. Kieran Wallace and Mr. Eamonn Richardson (the "Special Liquidators") of KPMG were appointed joint special liquidators of Irish Bank Resolution Corporation Limited (in Special Liquidation) with all of the duties and powers conferred upon them by the IBRC Act. I am advised that the contractual terms and conditions of customer mortgages and other borrowings of IBRC will not change as a result of the appointment of the Special Liquidators or the ultimate sale of the obligations to a third party.
The Special Liquidators have also confirmed that the residential mortgage customers of IBRC Limited (in Special Liquidation) continue to enjoy the protection of the Central Bank Code of Conduct on mortgage arrears and other protections in Irish consumer law. I have been advised by the Special Liquidators that they continue to engage with customers who are in difficulty through the implementation of CCMA and are entering into appropriate MARS strategies with them.
The Special Liquidators are in the process of conducting a sales process in respect of the IBRC residential mortgage portfolio. The continued applicability of the Central Bank Code of Conduct on Mortgage Arrears and Mortgage Arrears Targets Programme will depend on the regulatory status of the ultimate acquirer of the portfolio which we will not know until the sales process has concluded. In the event that NAMA ultimately acquires this portfolio, the NAMA Board will determine its strategy at that stage and will, in doing so, be mindful of its legal obligations. I am advised that, should they acquire the portfolio, NAMA is likely to apply best practice in this regard and no borrower will in any worse position.