Written answers

Wednesday, 28 November 2012

Department of Finance

Irish Bank Resolution Corporation

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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To ask the Minister for Finance if, further to Irish Bank Resolution Corporation’s appearance at the Oireachtas Committee on Finance, Public Expenditure and Reform on the 31 of October 2012, he will detail the total cost to IBRC for the estimated 230 full-time people in the bank working on the National Asset Management Agency portfolio for 2010, 2011 and projected for 2012; if he will detail the total income for IBRC for 2010, 2011 and to date in 2012 generated from the remuneration of up to a maximum of ten basis points on the total gross quantum of NAMA loans; and if he will make a statement on the matter. [53217/12]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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Participating Institutions fees for services to NAMA are based on 10 basis points of loans managed or actual costs incurred, whichever is the lesser. IBRC have advised me that as disclosed in IBRC’s 2012 Interim Report (page 35), which covers the period from January to June 2012, NAMA were charged €15m in relation to the servicing of loans acquired from the Bank. The corresponding charge for IBRC for 2011 (Annual Report page 60), was €28m (includes former INBS for H2 2011) and for the former Anglo Irish Bank for 2010 was €7m. I am further advised that income received from NAMA covers the cost of the Bank servicing the NAMA portfolio in 2011 and H1 2012. In 2010, there was a small net cost incurred by the former Anglo Irish Bank for servicing the NAMA portfolio. On 1 January 2011, the maximum amount that could be recharged to NAMA increased to 10 basis points of loans being serviced on their behalf.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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To ask the Minister for Finance if further to Irish Bank Resolution Corporation’s appearance at the Oireachtas Committee on Finance, Public Expenditure and Reform on the 31 of October 2012, he will detail the percentage or portion of IBRC clients who are not co-operating with IBRC; if he will detail the total amount of rental income that is now directly mandated straight into IBRC as a percentage of total rental income from IBRC assets; and if he will make a statement on the matter. [53218/12]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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The overriding mandate of IBRC is to maximise the recovery of loans on behalf of the State and to wind down over time. I have been advised that the underlying approach of the Bank is to work constructively with each borrower on an individual basis. IBRC does not disclose the numbers of clients who are/ are not cooperating with the Bank as this information is commercially sensitive. In addition, IBRC have informed me that it is not the Bank’s practice to separately disclose rental income received in relation to repossessed collateral. As per the 2011 Annual Report & Accounts, IBRC does however disclose that during 2011 the Bank repossessed collateral, consisting of land and property, equities and cash, of €40m on balances of €91m (2010: €52m on balances of €350m). It is the Bank’s policy to dispose of repossessed assets in an orderly fashion and the proceeds, together with any rental income received in the interim, are used to reduce or repay the outstanding balance.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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To ask the Minister for Finance if, further to Irish Bank Resolution Corporation’s appearance at the Oireachtas Committee on Finance, Public Expenditure and Reform on the 31 of October 2012 that their strategy is to continue through this process of preparation and maintenance of data tapes that they can put portfolios or more individual loans into the marketplace and close it earlier, this includes the entire UK loan book; if he will confirm if the preparation and maintenance of data tapes for the UK loan book has been completed in preparation in the event of a large portfolio transaction sale taking place; and if he will make a statement on the matter. [53219/12]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I have been informed that IBRC does not disclose details of its strategic or tactical plans relating to the loan recovery process due to the various associated commercial risks. The Bank considers all options for debt recovery in its efforts to maximise recoveries for the State.

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