Written answers

Thursday, 1 December 2016

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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147. To ask the Minister for Finance the amount of money he expects the State to receive from the liquidation of IBRC; the timeframe he expects the State will receive it and the use the proceeds will be put to; and if he will make a statement on the matter. [38181/16]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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Officials in my Department have advised me that Department of Finance related claims in the region of €1.1bn have been submitted to the Special Liquidators of IBRC. I am aware that other State related claims have also have been submitted but these are a matter for those entities. The Special Liquidators have advised that the likely financial result for the State from the Special Liquidation of IBRC is not yet known as it will be dependent on the ultimate level of dividend available.

As per the IBRC Progress Update Report of May 2016, the Special Liquidators have previously advised that they will pay an interim dividend of 25% to all admitted unsecured creditors of the liquidation of IBRC before 31 December 2016.

As also previously advised in the IBRC Progress Update Report of May 2016, it is the expectation of the Special Liquidators, based on current information, that the eventual unsecured creditor dividend will be in the range of 75% - 100% of all eligible claims. This eventual dividend range is subject to change depending on future events which are outside the control of the Special Liquidators. The ultimate level of dividend paid to each creditor cannot be known until such time as all loan assets are sold, the total level of adjudicated creditors is finalised and the other contingent creditor claims which may crystallise, including those from litigation, are known.

As a result of The European System of National and Regional Accounts (ESA 2010), IBRC is classified in government. Any payment from the Special Liquidators of IBRC to the State would be considered an intra-government payment with no impact on the deficit. It would however improve the exchequer borrowing requirement as the cash received would increase the cash balances in the Central Fund and thereby reduce the required level of borrowing.

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