Paul Kehoe (Wexford, Fine Gael)
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Question 73: To ask the Minister for Finance if he will confirm the period of time it takes for a genuine loan proposal to be processed from the time it is sent into the headquarters of Anglo Irish Bank to the issue of the letter of offer; if he will further confirm the number of persons working in the Department who are processing such loans in view of the fact that it appears that from the time genuine customers send in a request for a drawdown of previously approved funds it can take in excess of two weeks; the reason for this delay; his proposals to improve the efficiency of Anglo Irish Bank when dealing with customers who are legitimate and who are endeavouring to sell houses in order to repay their debts; if priority is being given to these persons in order to expedite loan applications and loan requests; and if he will make a statement on the matter. [29055/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Anglo Irish Bank is run on an arms length commercial basis by the Board of Anglo. Consequently, matters which relate to the normal commercial business of the bank, including the processing of loan applications and other business services by the bank, are a matter for the Board of Anglo.

As the Deputy will be aware the bank is restricted under the terms of the Subscription Agreement from issuing new loans to new or existing clients save where the lending is necessary to protect the bank's asset quality, to ensure losses are kept to a minimum in its Loan Book or pursuant to legally binding commitments.

I am informed by the bank that for existing committed facilities where the loan/legal documentation is confirmed to be in place, payments are typically made within a minimum of 2 working days. Delays to payments being released may arise for a number of reasons e.g. incomplete loan/legal documentation or facility balance being in excess of limit and in such cases it is necessary to refer the case to Credit Committee for approval.

With regard to customers who require release of security resulting from the sale of an asset it is important that the bank ensures a true market value is being realised for the asset. Once this requirement has been satisfied and the arrangements are within the terms of the Credit Committee approval, the request will typically be approved in a timely manner.

My Department has no role or involvement in processing loan applications.