Dáil Éireann Debate, Thursday - 20 February 2014
90. Deputy Michael McGrath asked the Minister for Finance if permanent tsb has sought his views on a full disposal of any part of its mortgage loan book; his views on such a course of action; and if he will make a statement on the matter. [8844/14]
View answerAs part of discussions surrounding the Central Bank's Prudential Liquidity Assessment Review (PLAR) issued in March 2011, which identified several loan books for deleverage, and the preparation of a restructuring plan, officials from my department have had ongoing engagement with Permanent TSB (PTSB) regarding the sale of loan books, including mortgage loan books.
I have been informed by PTSB that a very small number of mortgage loans were sold to a bank as part of the sale of Permanent TSB Finance in December 2012 and the protections contained in the CCMA continued to apply to these customers.
Under Clause 11 of the Relationship Framework in operation PTSB would be obliged to consult with me if they were proposing a disposal of a loan/loans for an amount in excess of €50 million. In the Relationship Framework it is recognised that PTSB remains a separate economic unit with independent powers of decision and that its Board and management team retain responsibility and authority for determining PTSB's strategy and commercial policies and conducting its day-to-day operations
Should I be consulted on the sale of any part of the mortgage loan book in the future I will carefully consider the matter based on the facts and in particular the impact on PTSB's profit, capital and funding.
