Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

59. To ask the Minister for Finance further to Parliamentary Question No. 308 of 4 November 2014, in view of the fact that these loans have gone through two rounds of auctions and remain unsold, if the liquidator of the Irish Bank Resolution Corporation will now invite the mortgage holders themselves to bid for their own loans, and will he encourage the State owned banks AIB and PTSB, wherever possible, to facilitate the borrowers to buy these mortgages; and if he will make a statement on the matter. [43434/14]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Special Liquidators continue to implement the orderly and efficient wind down of IBRC in accordance with the provisions of the IBRC Act and the instructions issued by the Minister for Finance under the IBRC Act 2013.

As the Deputy is aware, for operational reasons, the loan assets of IBRC were divided into six portfolios: Evergreen, Sand, Rock, Salt, Stone and Pebble.

The Sand portfolio comprised 12,702 Irish originated residential mortgages with a par value of €1.8bn, most of which had transferred from Irish Nationwide Building Society. 64% of the Sand portfolio were sold to two buyers, namely Lone Star and Oaktree Capital Management, L.P.

The Special Liquidators have devised a further sales process in respect of the unsold residential mortgages (Project Pearl) so as to maximise the return to all remaining creditors of IBRC, including the State. This sales process is currently underway. It is not possible for me to interfere in the sales process developed by the Special Liquidators as to do so could have had a negative impact on the return achievable by the Special Liquidators. Such action could have left me open to challenge by other creditors of the bank.

The Special Liquidators have corresponded with all remaining residential mortgage holders of IBRC providing them with an opportunity to make written representations on the method of disposal of their loans and the criteria for determining who may bid for loan assets. Consideration has been given to these Borrower representations and the Special Liquidators have responded to these Borrower representations.

Having given due consideration to the representations and the professional advice received, the Special Liquidators have divided the remaining residential mortgages into two tranches. I am advised by the Special Liquidators that they expect the sales process for Project Pearl to be completed before 31 December 2014.