Dáil Éireann Debate, Friday - 7 September 2018
132. Deputy Michael McGrath asked the Minister for Finance the number of mortgages set to be sold by a bank (details supplied) as part of a project; the number of loans that are standard, variable, fixed rate and tracker mortgages; the number in each category that are performing; the number in each category that are adhering to the restructuring arrangement in tabular form; and if he will make a statement on the matter. [36145/18]
View answer140. Deputy Catherine Murphy asked the Minister for Finance the number of loans sold by a bank (details supplied) to companies that were categorised as tracker mortgage products; and if he will make a statement on the matter. [36324/18]
View answerI propose to take Questions Nos. 132 and 140 together.
As the Deputy will be aware the decisions around loan sales are the responsibility of the board and management of the banks which must be run on an independent and commercial basis. The Minister for Finance cannot stop loan sales, even by the banks in which the State has a shareholding.
I wish to advise the Deputy that my department does not hold the information that is being sought. Officials from my department contacted PTSB and it provided the following response:
"Permanent TSB plc (the ‘Bank’) has agreed to sell a Non-Performing Loan portfolio to the retail credit firm Start Mortgages DAC, supported by LSF Irish Holdings 97 DAC, both affiliates of the Lone Star Funds. Start Mortgages has been authorised by the Central Bank of Ireland since November 2008 and will become the servicer of the loans when the transaction completes later this year.
The loan sale was undertaken as part of the Bank’s strategy to reduce the ratio of Non-Performing Loans on the Bank’s balance sheet from c.26% in line with regulatory requirements.
The portfolio contains loans linked to c.10,700 properties. In terms of the make-up of the portfolio by loan type (Variable, Fixed, Tracker), the book broadly reflects the make-up of the Bank’s overall loan book.
All loans included in the sale are either Non-Performing or are cross-collateralised/connected to another loan which is Non-Performing, reflecting the Non-Performing Classification guidelines set out by European and Local Regulators.
Customers will continue to be afforded the protection of existing regulatory protections after the transfer completes."
