Dáil Éireann Debate, Thursday - 15 February 2018
116. Deputy Michael McGrath asked the Minister for Finance the progress a bank (detail supplied) has made in selling non-performing loans; the number and names of the bundles of loans set to be sold; the type of loans contained within each bundle; the value of each bundle; and if he will make a statement on the matter. [8045/18]
Amharc ar fhreagraI can confirm for the Deputy that I have been informed of permanent tsb’s decision to launch a sale process involving a portfolio of non-performing loans. This transaction was confirmed publicly by the bank earlier this week and has been dubbed Project Glas. This decision is being taken to help reduce the bank’s high level of non-performing loans and is a move prompted by SSM regulatory requirements.
As I cannot interfere in the day to day operations of the bank nor the interaction with its regulator, these are decisions for the management and board of the bank and do not require my consent. Should the portfolio sale process reach an advanced stage, and if it is of a material scale, I would expect to be formally consulted under the bank’s Relationship Framework.
I understand that the vast majority of the loans for sale are in deep arrears including many that have not engaged with the bank in recent years. However as the proposed transaction is commercially sensitive, and I must respect stock exchange Market Abuse regulations, it would not be appropriate for me to provide any further commentary on the matter at this point.
While loan disposals are regrettable, as Minister for Finance I am conscious of the need for the bank to continue on its path to recovery. Permanent tsb is a very important part of the Irish banking sector and hence the economy, with over 1 million customers, €21bn of mortgage loans (gross) and €17bn of customer deposits. The bank also employs c. 2,500 staff.
