Dáil Éireann Debate, Tuesday - 4 March 2014
57. Deputy Luke 'Ming' Flanagan asked the Minister for Finance with regard to Irish Bank Resolution Corporation mortgages, if the liquidators will act in the best interest of the taxpayers and allow all interested bidders, to bid; if the liquidators are acting legally by excluding interested bidders; and if he will make a statement on the matter. [10797/14]
Amharc ar fhreagraThere is an obligation on the Special Liquidators to ensure that maximum value is extracted from the loan sales process for the benefit of all the creditors of IBRC including the State.
The Special Liquidators appointed PwC as independent advisors to value the residential mortgage portfolio and also to provide independent advice in developing a robust and credible sales strategy for the sale of the residential mortgage portfolio which would ensure that maximum value was obtained for all creditors of IBRC.
Following the representations received from borrowers and the independent advice provided by PwC, it was decided that the residential mortgage portfolio be sub-divided into four portfolio tranches with a view to maximising market interest and return within the timelines set out in the Ministerial Instruction. I am advised that the Special Liquidators did consider the concept of offering individual mortgages for sale however a number of issues impacted on the decision including cost, timing, professional advice received, borrower only bids, confidentiality of personal information, execution risk and delivering best results for the creditors.
I am advised that the Special Liquidators are confident that a portfolio sale of the residential mortgage book will deliver the maximum value from the sale of the residential mortgage portfolio and thus maximise the return for the creditors of IBRC including the Irish taxpayer.
