Finian McGrath (Dublin North Central, Independent)
Link to this: Individually | In context | Oireachtas source

278. To ask the Minister for Finance his views on correspondence (details supplied) regarding the Irish Bank Resolution Corporation Limited and the selling off of loans to a company which has a conflict of interest with the corporation; and if he will make a statement on the matter. [23934/15]

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

I wish to advise the Deputy that, through ministerial representations, I have corresponded with those persons whose details are attached to this parliamentary question.

In relation to loan assets purchased by third party purchasers, neither I or the Special Liquidators are able to comment on the intentions and/or the subsequent actions of these third party purchasers once the loan assets have been sold.

The Government is committed to bringing forward legislation to protect mortgage holders. As you may be aware, the Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015 was published in January. The purpose of the Bill is to ensure that consumers retain the protections they had prior to the sale of their loan. The second stage of the Bill was taken in the Dáil on 4th February 2015 and the Committee stage of the Bill was taken on 27th May 2015.

While the legislation is not retrospective, it will apply to all loans as defined, regardless of when they were acquired, thus capturing loans that have already been sold. A similar approach was used in 2013 in relation to debt management firms.

In relation to the perceived conflict of interest highlighted in the correspondence which is attached, I am unable to comment on the directorships of third party purchasers of loan assets. However, I can confirm that the Special Liquidators devised and ran a competitive sales process, following the receipt of independent advice, for all loan assets of IBRC which they have sold.

The SLs appointed PwC as independent advisors to value the residential mortgage portfolio and to provide advice in developing a strategy for the sale of the residential mortgage portfolio which would ensure that maximum value was obtained for all creditors of IBRC. Per my instruction, the assets of IBRC could only be sold at a price equal to or in excess of the independent valuations obtained.