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

27. To ask the Minister for Finance if he has had direct discussions with US private equity funds which have purchased circa. 90% of the assets sold by the National Asset Management Agency, with regard to their intentions for their investments in view of the important influence they now have on the Irish economy; and if he will make a statement on the matter. [4673/15]

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

As the Deputy will be aware, a significant consequence of the financial crises in Ireland has been the deleveraging of our financial services system, which includes the individual bank asset sales programmes which are now largely complete, the liquidation of IBRC and the ongoing disposal of NAMA's assets.

A key objective in each of these deleveraging processes has been to achieve the best possible financial return for the State.  With asset disposal processes occurring and set to continue in both Ireland and across Europe, Irish institutions have and will continue to face competition for investment capital as they seek to achieve the best possible financial return.

Ireland is a small open economy and as such we do not discriminate between domestic and international investment capital.  The vast majority of Irish assets sold in the wake of the financial crisis have been openly marketed for sale to ensure that the best price available in the market is achieved. This approach allows both Irish and non-Irish buyers to compete for all assets. It would not be in the interest of the State to favour any class of buyer or impose restrictions or curtailments on these transactions.

As part of our broader efforts to attract much needed capital to Ireland in Th wake of the financial crises and generally encourage inward investment into Ireland, stakeholders across the Irish system, including the banks, NAMA, IBRC, the IDA, the NTMA as well as my officials and occasionally myself, do meet with investors interested in investing in Ireland including through the acquisition of loan or property assets and the establishment of business enterprises in Ireland.  

This has included occassional meetings with representatives of private equity funds who have purchased or may be interested in purchasing significant amounts of loans and assets from NAMA and other Irish sellers.  Such discussions do not involve the discussion of specific sales processes or specific assets but rather provide these investors with the opportunity to communicate their broader interests in and investment proposition regarding Ireland, their plans for further investment and potential for local business development and job creation.  They also provide myself and the other Irish institutions with increased visibility regarding Ireland's relative attractiveness as destination for foreign capital investment.