Banking Sector

Dáil Éireann Debate, Tuesday - 8 July 2014

Tuesday, 8 July 2014

Ceisteanna (185)

Stephen Donnelly

Ceist:

185. Deputy Stephen S. Donnelly asked the Minister for Finance in view of the €2 billion of par value loans currently being sold by the special liquidators of the Irish Bank Resolution Corporation, the €2.6 billion of par value mortgages and commercial real estate loans being sold by Permanent TSB and the sale by the National Asset Management Agency of various loans, his views that these disposals would benefit from centralised management; if sale costs could be reduced, and sale proceeds maximised from centralised management; and if he will make a statement on the matter. [29471/14]

Freagraí scríofa

Minister for Finance

The separate boards and management teams of IBRC (in Special Liquidation), Permanent TSB and the National Assets Management Agency retain the responsibility and the authority for determining the strategy and commercial decisions and conducting the day to day operations, including the sale of assets, and management of those legally separate institutions. In making such decisions the Board and management teams are highly conscious of ensuring that sale costs are minimised and that maximum proceeds are achieved in the sale of all loan portfolios. It would not be appropriate for me to interfere in the management decisions or the day to day operations of those institutions, none of which can be controlled by the State.

That said, the ongoing sales processes that are referred to are complex and specific to the various institutions. The portfolios concerned also involve considerably different asset types and classes in many cases. Centralised management of the various loan sales may be difficult given the complexities involved and the different strategic focuses of the institutions involved.

Question No. 186 answered with Question No. 183.