Dáil Éireann Debate, Tuesday - 18 February 2014
206. Deputy Stephen S. Donnelly asked the Minister for Finance further to Parliamentary Question No. 137 of 22 October 2013, if he will publish the independent advice from PwC in relation to the way the residential mortgage portfolio and other loans in Irish Bank Resolution Corporation are to be dealt with, sought by the IBRC special liquidators. [8165/14]
View answer207. Deputy Stephen S. Donnelly asked the Minister for Finance if a scenario was modelled in which individual mortgagors, whose loans have ended up with Irish Bank Resolution Corporation would be able to bid on their own loans; and if such a scenario was modelled, he will publish same. [8166/14]
View answer208. Deputy Stephen S. Donnelly asked the Minister for Finance if analysis has been carried out that indicates the potential loss in return to the State if individual mortgagors were permitted to bid on their own loans, as opposed to splitting the Irish Bank Resolution Corporation loan book into four segments, as currently planned; and if so, if he will publish the difference in sale value. [8167/14]
View answerI propose to take Questions Nos. 206 to 208, inclusive, together.
There is an obligation on the Special Liquidators to ensure that maximum value is extracted from the loan sales process for the benefit of all the creditors of IBRC including the State. The sales process plan and timeline for the sale of the residential mortgage portfolio has been developed following professional advice and in light of requirements for a robust and credible sales process in that context. Neither I nor my officials had any role in the development of the sales process plan for the residential mortgage book.
The Special Liquidators have given significant consideration to and have sought independent advice from PwC in relation to how the residential mortgage portfolio is to be dealt with. Following that independent advice, the Special Liquidators have decided that the residential mortgage book would be sold in portfolios with a view to maximising market interest and return within the timelines set out in the Ministerial Instructions.
I am advised that it is for this reason that the Special Liquidators have decided not to accept any bids from individual mortgage holders, however mortgage holders are permitted to buy out their mortgage at par value and that there are no legislative barriers for such Borrowers to do so.The Special Liquidators will not be publishing the independent advice received in relation to the sales process and timeline as it is commercially sensitive information which could potentially have a detrimental impact on asset recovery from the impending sale process.
