Written answers

Tuesday, 21 February 2012

Department of Finance

State Banking Sector

9:00 pm

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context

Question 161: To ask the Minister for Finance if he will provide details of the Irish Bank Resolution Corporation’s plans for the disposal or management of its remaining loan book; the value of the loan book and details of the locations to which it relates; the current estimated timeframe for winding up the bank; and if he will provide an update on the current estimate of the final cost of rescuing the institution. [9376/12]

Photo of Michael NoonanMichael Noonan (Minister, Department of Finance; Limerick City, Fine Gael)
Link to this: Individually | In context

The Deputy will appreciate that much of the information requested in his question is subject to external factors and that it is not practical to be definitive in terms timelines or costs at this point. Suffice to say that the Board of the bank is charged with the work-out of the Bank’s assets in a manner that will best protect the interests of the State. However, the framework within which the bank is operating is set out in the EU Commission Decision on the restructuring plan which issued on 29.6.2011. The link below provides access the redacted version of the Decision.

IBRC is working to generate options for the efficient work out of its loan books in accordance with the Bank’s approved mandate. This includes examining accelerated disposal where this makes economic sense. Following the timely sale of the majority of the Bank’s US loan portfolios, the bank now continues with further detailed analysis of the remaining loans in Ireland and the UK. This analysis will further inform the Board and management team of IBRC on the timing of the next phases of deleveraging. The exact value of its remaining loans will be reported in the Bank’s annual report and accounts which are due for release next month. The final cost of rescuing the institution is estimated to be within the current capital provided by the State and will predominately be a function of the property markets in Ireland and the UK together with the availability of counterparty liquidity to enable further disposals by way of recoveries, repayments and sales. It will also depend on the outcome of any negotiations on the promissory note between the Government and the EU that are still underway. The estimated timeframe for the resolution of the institution is currently nine years as detailed in the Bank’s approved restructuring plans. http://ec.europa.eu/competition/state_aid/cases/239466/239466_1251121_21_3.pdf

Comments

No comments

Log in or join to post a public comment.