Written answers

Thursday, 21 March 2013

Photo of Eamonn MaloneyEamonn Maloney (Dublin South West, Labour)
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To ask the Minister for Finance in the event that the special liquidator for Irish Bank Resolution Corporation does not realise the economic valuation of the assets of IBRC, his plans for the transfer of the assets into the National Assets Management Agency in view of reports (details supplied) and the plans in place to arrange for a transfer of Irish Bank Resolution Corporation staff to service these assets in an effort to maximise the return to the State; [14085/13]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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As the deputy is aware as part of the Government’s decision on 7th February 2013 to appoint Special Liquidators to IBRC, it was decided that the National Asset Management Agency (NAMA) would acquire those loans which have not been sold after the Special Liquidators have completed their current valuation and sales process. It is expected that IBRC loans will be acquired from the Special Liquidator on a phased basis. NAMA has established a special purpose vehicle (National Asset Resolution Ltd – NARL ) to acquire and manage IBRC loans following completion of the loan valuation and sales process.

As was pointed out recently by the Chairman of NAMA any new loans acquired by NAMA from the Special Liquidators later in the year will result in a significant increase in the agency’s workload. I would refer you to the recent press announcements made by both NAMA and IBRC in special liquidation regarding these developments which are available on their respective websites. NAMA has recently published, on the www.etenders.gov.ie website, a Request for Proposals (RFP) seeking two service providers to take over primary and special loan servicing on two distinct types of loans that may be acquired by NAMA under IBRC Act 2013 after completion of the loan sales process currently being conducted by KPMG, the Special Liquidators of IBRC :

- The first loan type are commercial property loans, residential investment and development loans and business banking loans; and

- The second are Personal loans, principally residential mortgage loans

It is envisaged that NAMA, which plans to recruit staff from IBRC, will operate in close conjunction with the service providers for both types of loans, including providing them with credit, legal, treasury, finance and accounting services.

As it is not yet clear what proportion of the current IBRC portfolio will transfer to NAMA, given that the Special Liquidators’ sales process has not concluded, it is not possible to provide estimates of the employee numbers that will be involved in the new arrangements being put in place by NAMA. As with the current NAMA portfolio acquired under the 2009 NAMA Act, a major objective will be to manage the incoming portfolio to be acquired under IBRC Act 2013 in a cost-effective and efficient manner on behalf of the taxpayer.

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