Peadar Tóibín (Meath West, Sinn Fein)
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21. To ask the Minister for Finance if he is satisfied with the treatment of businesses which had loans at the Irish Bank Resolution Corporation during the liquidation process regarding their right to know who has bought their loan and the unregulated nature of some of the purchasers of loan books. [37215/14]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Special Liquidators that it is policy to notify all commercial borrowers whose loans are sold as part of the liquidation of IBRC of the sale of their loan and the identity of the purchaser of that loan.

 In addition, the Special Liquidators also require purchasers to send separate written notifications to borrowers, such notifications to include the identity of the purchaser and contact details should borrowers have any queries in relation to the transfer. This process ensures the borrowers know who has purchased their loans and who to contact should borrowers have any additional questions in relation to either their loan(s) or the purchaser.

The relevant code of conduct that can apply to certain business borrower lender relationships is the Code of Conduct for Business Lending to Small and Medium Enterprises (SME Code). The application of the SME Code varies depending on whether the relevant purchasing entity of the commercial loans is a regulated entity or an unregulated entity. If the purchasing entity is a regulated entity, it is required to comply with the SME Code. If the purchasing entity is not a regulated entity, it is not required to comply with the SME Code.

In terms of context, unlike consumer lending, business lending is not an activity which, in and of itself, must be undertaken by a regulated entity i.e. an unregulated entity could be established for the sole purpose of lending to SMEs and this would not require authorisation, and would not be subject to any legislation or codes.

It is also important to note that the sale of these loans does not change the terms and conditions of the loan agreement in any way. Irrespective of who acquires the loan(s) they will be required to honour the legal terms and conditions of the existing loan agreement(s).