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IBRC Mortgage Loan Book

Dáil Éireann Debate, Thursday - 2 October 2014

Thursday, 2 October 2014

Ceisteanna (32)

Stephen Donnelly

Ceist:

32. Deputy Stephen S. Donnelly asked the Minister for Finance if he will provide an update on the Irish Nationwide Building Society mortgages that were not sold in the initial tranche, and which it was suggested may be bought by the National Asset Management Agency, including if these mortgages have now been sold; if so, to whom; and if not, the current status of the sales process. [37067/14]

Amharc ar fhreagra

Freagraí scríofa

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. 

Under initial instructions from the Minister for Finance, NAMA were obliged to purchase the unsold loan assets at their independent valuations. The Special Liquidators have confirmed that the proceeds raised from the sale of IBRC assets will be sufficient to fully repay the IBRC debt to NAMA (previously the Central Bank of Ireland). Therefore I have instructed the Special Liquidators that NAMA will now not be obliged to purchase the unsold assets as previously outlined.

As a result, the Special Liquidators have devised a further sales process in respect of the unsold residential mortgages (which is referred to as Project Pearl) so as to maximise the return to all remaining creditors of IBRC, including the State. This new sales process is currently underway. 

As part of this new sales process, the Special Liquidators 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 are in the process of responding 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 and will therefore not be selling any mortgages on an individual basis. The Special Liquidators expect the sales process for Project Pearl to be completed before 31 December 2014.

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