I propose to take Questions Nos. 46, 60 and 64 together.
The Special Liquidators have responsibility for the appointment of independent valuers to value the assets of IBRC.
Section 9 of the IBRC Act provides that the Minister shall issue the Special Liquidator with instructions setting out the details of the manner in which the winding up of IBRC is to proceed. Section 9 also gives the Minister the power to give a direction to the Special Liquidator if he is of the opinion that it is necessary for the achievement of any of the purposes of the Act to do so. The Minister may revoke or amend the instructions to the Special Liquidator. A Special Liquidator shall comply with any instructions issued or directions given under the IBRC Act.
Section 14 of the IBRC Act requires the Minister to issue an instruction to the Special Liquidator as to the manner, consistent with the purposes of the IBRC Act, in which bank assets to be bid upon by NAMA, in accordance with a direction given under Section 13(1)(a), are to be valued; and to appoint a person to carry out an independent valuation of those bank assets.
Section 14 of the IBRC Act provides that the valuation of loan assets shall be valued using discounted cash flow analysis, taking into account the timing and reliability of cash flows, together with an appropriate discount factor to determine the value or, where appropriate, in accordance with other standard loan valuation methodologies.
The specific valuation methodologies to be employed will be agreed between the Special Liquidators and the independent professional valuers appointed by the Special Liquidators. However, in their determination of the valuation methodologies that ought to be employed, the Special Liquidators are required to comply with Section 14 of the IBRC Act as well as any further instructions or directions issued by the Minister pursuant to the IBRC Act 2013. Apart for any prescriptions concerning the valuation methodologies to be applied contained in the IBRC Act and in any further instructions or directions issued to the Special Liquidators, the independent valuation of the assets is solely at the discretion of the independent valuers.
Pursuant to the directions issued to NAMA in accordance with the provisions of the IBRC Act 2013, NAMA will be required to bid for the assets of IBRC (In Special Liquidation) at a price equal to the independent valuation.