Dáil Éireann Debate, Thursday - 20 February 2014
40. Deputy Michael McGrath asked the Minister for Finance when the European Commission will deliver its response to the restructuring proposals for permanent tsb; the progress that has been made to date in ensuring permanent tsb plays a positive role in the Irish banking market; and if he will make a statement on the matter. [8380/14]
View answerA way forward for Permanent TSB was agreed with the Troika in April 2012 which envisaged it playing an important role in the future of Irish retail banking, being a more focused retail bank bringing an element of competition to the marketplace which has consolidated significantly since 2008. In this regard Permanent TSB prepared a Restructuring Plan, which the Department of Finance submitted to the European Commission ("the Commission") in June 2012.
As requested by the Commission an updated version of the plan was submitted in August 2013 which is broadly in line with the June 2012 plan. Discussions are ongoing at a technical level involving the Commission, the Department of Finance and Permanent TSB in relation to the plan. As the Deputy will be aware the timeline for approval of a Restructuring Plan (for Permanent TSB or any other entity) is a matter for the Commission and I do not intend to speculate on when that process might be concluded.
Permanent TSB has made significant progress in delivering key elements of its Restructuring Plan over the last year. Permanent TSB continues to work to enhance the value of our investments through the continued delivery of the Restructuring Plan, which will, if delivered, provide the State with more optionality regarding the future structure of Permanent TSB.
During 2013 Permanent TSB grew its presence and activity in the retail market in general and in the current account and deposit markets in particular, as well as in mortgages and term lending; and it launched several new products during the year. As the Deputy may be aware Permanent TSB is due to report its performance for 2013 in late March and while it is not appropriate to divulge details of performance in advance of that, the results, when announced, will demonstrate that Permanent TSB was a meaningful player in these segments in 2013. For example I am advised by Permanent TSB that its level of new mortgage lending more than doubled in 2013 compared to 2012.
Permanent TSB has also made progress in relation to managing its portfolio of mortgages in arrears and has created a dedicated team to deal with those customers and to roll out various solutions to them. I am advised by Permanent TSB that during 2013 it made approximately 22,000 offers of sustainable solutions to customers in arrears or having difficulty with their mortgage repayments.
