Dáil Éireann Debate, Thursday - 18 December 2014
101. Deputy Michael McGrath asked the Minister for Finance the position regarding the disposal or transfer of the remaining Irish Bank Resolution Corporation loan book; if he has issued a direction order on the matter; and if he will make a statement on the matter. [49267/14]
View answer102. Deputy Michael McGrath asked the Minister for Finance if the Irish Bank Resolution Corporation mortgage holders whose mortgages are currently still with IBRC have had an opportunity to bid for their own loans; and if he will make a statement on the matter. [49268/14]
View answerI propose to take Questions Nos. 101 and 102 together.
The Special Liquidators continue to implement the orderly and efficient wind down of IBRC in accordance with the provisions of the IBRC Act and the instructions issued by the Minister for Finance under the IBRC Act 2013.
As the Deputy is aware, for operational reasons, the loan assets of IBRC were divided into six portfolios: Evergreen, Sand, Rock, Salt, Stone and Pebble.
The Sand portfolio comprised 12,702 Irish originated residential mortgages with a par value of €1.8bn, most of which had transferred from Irish Nationwide Building Society. 64% of the Sand portfolio were sold to two buyers, namely Lone Star and Oaktree Capital Management, L.P.
As it became apparent that the expected proceeds to be raised from the sale of the IBRC loan assets were to be sufficient to fully repay the IBRC debt to NAMA, the Minister for Finance instructed that NAMA were no longer obliged to purchase the unsold IBRC assets at their independent valuation as previously envisaged.
Since that instruction, the Special Liquidators have undertaken further sales processes in respect of unsold assets. This includes the sale of previously unsold residential mortgages (Project Pearl) which, as is the case for all the sales processes, aims to maximise the return to all remaining creditors of IBRC, including the State. This sales process is currently underway.
The Special Liquidators have corresponded with all remaining residential mortgage holders of IBRC 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 has been given to these Borrower representations and the Special Liquidators have responded to these Borrower representations.
Having given due consideration to the representations and the professional advice received, the Special Liquidators have divided the remaining residential mortgages into two tranches for sale. The Special Liquidators expect the sales process for Project Pearl to be completed before 31 December 2014.
