Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware, for operational reasons the loan assets (totalling €21.7 billion) of Irish Bank Resolution Corporation Limited (in Special Liquidation) ( IBRC ) were originally divided into six portfolios:Evergreen, Sand, Rock, Salt, Stone & Pebble.

Prior to establishing the sales processes the Special Liquidators corresponded with borrowers and sought representations regarding how their loans should be sold.  The Special Liquidators then gave due consideration to the representations made by the borrowers and professional advice received in devising each of the sales processes.The first sales process of these portfolios completed in July 2014. Following instructions from the Minister for Finance, NAMA were no longer obliged to purchase the unsold IBRC assets at their individual valuation as previously envisaged, as the expected proceeds to be raised from the sale of the IBRC loan assets were to be sufficient to fully repay the IBRC debt to NAMA.

The Special Liquidators then devised a further sales process in respect of the final €2.5 billion worth of loans left unsold from the first process (as well as IBRC s stake in the IBRC Assurance Company and the NAMA subordinated bonds) which was initiated in August 2014.  Again, the Special Liquidators corresponded with those borrowers of the unsold loan assets and sought representations of how their loans should be sold. Having given due consideration to the representations made by the borrowers of the remaining loan assets and the professional advice received, the Special Liquidators divided the remaining loan assets into four portfolios: Quartz, Pearl, Amber and Amethyst. Project Opal was the sale IBRC s stake in IBRC Assurance Company and Project Jade was the sale of IBRC holding of NAMA subordinated bonds. The sale of each of these portfolios completed in March 2015.

No IBRC borrower was provided with an exclusive opportunity to buy back their loan(s) at a discount or was offered an incentive discount on their loans to refinance their loans.  However, as per my answer to Parliamentary Question No. 285 of 12 May 2015, following the Special Liquidators' due process and as part of the competitive sales processes devised by the Special Liquidators, it was possible for some borrowers to bid for their own loans.

The Special Liquidators can confirm that no loans were sold for less than their valuation price (as per the Ministerial Instruction) however they will not be providing information on the prices achieved in the sale process as this is commercially sensitive information.

I would also point out that the progress reports on the Special Liquidation of IBRC, published in June 2014 and March 2015, are available on the Departmentt of Finance website which provide further detail around the sales processes and the progress of the special liquidation more generally.