Kieran O'Donnell (Fine Gael) | Oireachtas source

It has been stated that there is a provision of close to 50% against these loans, which ties in with the warehousing being approximately 50%. I have done a rough calculation. If the bank sells them at a 40% discount, or at 60% of value, it would probably make €370 million; €740 million at a 30% discount, or 70% of value; or €1.1 billion at a 20% discount or 80% of value. If the bank has made a provision of 50% and the loans of ordinary homeowners are sold on, they have no say or involvement in any way in whom these loans are sold to. Suddenly their loans land on the desk of a fund. If the fund has bought them at a 40% discount and then sells them at more than 60% of the value, it makes a profit. Ordinary people are asking why they cannot offer 65% of the value of loans. The bank will be able to write back the provision and book a profit. Why will the bank not do this? That is the question we are being asked. I am bringing this back to what the lay person is asking. We accept that the bank wants to achieve €2 billion in capital reserves to allow it to function and that it has to deal with NPLs but the issue is how it deals with them. Will Mr. Masding address that matter? Given that provision has been made against these loans, why can ordinary homeowners who have taken out the loans pay, for example, 70% of their value? Does Mr. Masding understand from where I am coming?