Written answers

Tuesday, 4 March 2014

Department of Finance

IBRC Mortgage Loan Book

Photo of Luke FlanaganLuke Flanagan (Roscommon-South Leitrim, Independent)
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57. To ask the Minister for Finance with regard to Irish Bank Resolution Corporation mortgages, if the liquidators will act in the best interest of the taxpayers and allow all interested bidders, to bid; if the liquidators are acting legally by excluding interested bidders; and if he will make a statement on the matter. [10797/14]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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There is an obligation on the Special Liquidators to ensure that maximum value is extracted from the loan sales process for the benefit of all the creditors of IBRC including the State.

The Special Liquidators appointed PwC as independent advisors to value the residential mortgage portfolio and also to provide independent advice in developing a robust and credible sales strategy for the sale of the residential mortgage portfolio which would ensure that maximum value was obtained for all creditors of IBRC.

Following the representations received from borrowers and the independent advice provided by PwC, it was decided that the residential mortgage portfolio be sub-divided into four portfolio tranches with a view to maximising market interest and return within the timelines set out in the Ministerial Instruction. I am advised that the Special Liquidators did consider the concept of offering individual mortgages for sale however a number of issues impacted on the decision including cost, timing, professional advice received, borrower only bids, confidentiality of personal information, execution risk and delivering best results for the creditors.

I am advised that the Special Liquidators are confident that a portfolio sale of the residential mortgage book will deliver the maximum value from the sale of the residential mortgage portfolio and thus maximise the return for the creditors of IBRC including the Irish taxpayer.  

Photo of Lucinda CreightonLucinda Creighton (Dublin South East, Independent)
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58. To ask the Minister for Finance further to the Irish Bank Resolution Corporation special liquidator's statement that PwC were the party responsible for conducting a review on the cost implications to the creditors of IBRC, if they sold Irish Nationwide Mortgages on an individual borrower basis to those who could afford to refinance the loan at the reserve value; if he will publish the PwC review; and if he will make a statement on the matter. [10874/14]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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There is an obligation on the Special Liquidators to ensure that maximum value is extracted from the loan sales process for the benefit of all the creditors of IBRC including the State. On the appointment of the Special Liquidators, I instructed them to arrange for the valuation of IBRC s loan assets by independent advisors and to ensure that the valuation of all loan assets was completed on or before 30 November 2013. In this respect, the Special Liquidators appointed PwC as independent advisors to value the residential mortgage portfolio.

PwC were also appointed to provide independent advice in developing a robust and credible sales strategy for the sale of the residential mortgage portfolio which would ensure that maximum value was obtained for all creditors of IBRC. The Special Liquidators were instructed to ensure that the sale of all Company loan assets was agreed or completed by no later than 31 December 2013 or as soon as practicable thereafter.

In view of the commercially sensitive nature of the material contained in the PwC report the Special Liquidators regret that they are not in a position to provide a copy or put it into the public domain.

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