Michael McGrath (Cork South Central, Fianna Fail)
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147. To ask the Minister for Finance the circumstances under which PermanentTSB must dispose of its holding in its Capital Home Loans buy-to-let subsidiary; the current value ascribed to this subsidiary in PermanentTSB's books; if he will provide more time for the bank to sell its holding; and if he will make a statement on the matter. [19704/16]

Michael Noonan (Limerick City, Fine Gael)
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Permanent TSB ("PTSB") has informed me that it no longer transacts new business in the UK and has been deleveraging its non-core UK based mortgage business. It has made significant progress in this regard, having sold GBP £2.5bn of UK Mortgages in 2015 in conjunction with its UK mortgage servicing platform, Capital Home Loans Limited ("CHL"). PTSB owns a further GBP £2.3bn of UK Mortgages which it also considers to be non-core and which it intends to deleverage.

The current restructuring plan approved for PTSB envisaged that the entire loan book would be sold by the end of June 2016 and required such a sale to take place if an offer in excess of 90% of the value of the loan book was received. However, despite considerable interest in the remaining unsold loans, as a result of the impact of the UK referendum vote on market confidence in H1 2016, no such offer was received and therefore a sale did not take place. Discussions are taking place with the European Commission on how to progress the deleverage of the remaining unsold loans in the future.