Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

No, he cannot. These decisions, including the composition of the loans included in any loan sale, are the responsibility of the board and management of the banks which must run on an independent and commercial basis. The banks' independence is protected by the relationship frameworks, which are legally binding documents that the Minister cannot change unilaterally. I am aware that some performing loans were transferred but there was cross-compliance issues with some of the loans. Unfortunately, if a performing loan is cross-securitised with another loan for another property, those loans have to go across or else there would be no security.

The Deputy asked why local authorities did not purchase the loans. The State provides the money for local authorities. Where will we get the billions of euro that are not accounted for? Will we just make the money up? Sinn Féin has Harry Potter-style economics.

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