Gerry Adams (Louth, Sinn Fein)
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Question 147: To ask the Minister for Finance if with respect to the disposal of bank assets in IBRC that a clear model in accordance with EU state aid rules has been formulated in the event IBRC decides to proceed with specific asset sales; if disposal of IBRC assets shall always be sold directly by the bank or through a third party; if he will outline if asset disposal by IBRC can be done in accordance with EU state aid rules without the appointment of a third party adviser; and if he will make a statement on the matter. [7690/12]

Michael Noonan (Limerick City, Fine Gael)
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IBRC is bound to adhere to the requirements of the EU Commission state aid decision on the revised restructuring plan for Anglo Irish Bank and Irish Nationwide Building Society. The commitments set out in the decision are monitored by a monitoring trustee approved by the Commission. The Commission decision does not determine whether or how assets should be sold by the Bank or through a third party. The Bank has the capacity to either use third party advisors or sell directly and in practice both mechanisms are used in order to achieve the most economically advantageous result for the taxpayer. The Bank does have a robust procurement policy and process for the appointment of any advisors or other providers of services to the Bank and this is used in support of the sales process.

Gerry Adams (Louth, Sinn Fein)
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Question 148: To ask the Minister for Finance if he will outline if with respect to disposal of bank assets in Allied Irish Bank that a clear model in accordance with EU state aid rules has been formulated in the event Allied Irish Bank decides to proceed with specific asset sales; if he will explain if disposal of Allied Irish Banks assets shall always be sold directly by the bank or through a third party; if asset disposals by Allied Irish Bank can be done in accordance with EU state aid rules without the appointment of a third party advisor; and if he will make a statement on the matter. [7691/12]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy will be aware, a key component of the Financial Measures Programme is the establishment of deleveraging plans to reduce the Irish banking system to an appropriate size and to stabilise its funding base. The Central Bank has agreed with the troika that a sustainable Loan to Deposit Ratio for the aggregate domestic banking system is 122.5%. As a first step in the Financial Measures Programme process, banks were instructed to segregate their loan assets strategically into core and non-core portfolios. The key principle governing the definition of core portfolios was the need to service the retail, SME and corporate banking requirements of the Irish economy, including cross-border trade and investment, acknowledging that some limited element of international business remains essential. In doing so, the banks needed to ensure that at the end of the process a viable core bank, independent of direct or indirect State support and capable of returning to the capital markets in the medium term, would remain. To this end, separate Non-core teams have been established by each of the banks to focus on managing the deleveraging process. AIB's Non-core team continues to manage AIB's deleveraging as required under the Financial Measures Programme.

AIB is in the process of agreeing its Restructuring Plan with the European Commission. Once that process has concluded compliance with its commitments will be monitored by a Monitoring Trustee approved by the Commission. My understanding is that the Restructuring Plan will not prescribe a particular method or structure of sale. Normally a bank retains the ability to conduct deleveraging using the most appropriate structure for that transaction, in order to obtain a competitive price whilst satisfying any further requirements under its Restructuring Plan. I have been informed by AIB that for material disposals, it often uses the services of agents in the marketing and sales process if it believes this will ensure the price achieved on disposal of assets is maximised.