Paul Murphy (Dublin South West, Anti-Austerity Alliance)
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63. To ask the Minister for Finance if he will report on the sale of Project Cyprus by a bank (details supplied); his views on the impact of the sale on tenants of the bank's buy-to-let properties; and if he will make a statement on the matter. [10028/17]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware significant progress has been made across the Irish banking sector in reducing the level of non-performing loans (NPLs) since the financial crisis. Despite this progress, the level of NPLs in Ireland remains well above the European average. Hence the Single Supervisory Mechanism (SSM), as the regulator for larger banks, has tasked the management and board of each institution with developing and implementing a strategy to address this challenge. This challenge will have to be met whether or not the State has a shareholding in the bank concerned.

In relation to Project Cypress, AIB has informed me that a process is underway to sell a portfolio of non-performing BTL (buy-to-let) loans on properties which were in the main acquired as investments. It does not include PDH (private dwelling home) mortgages as has been suggested in some quarters.  The portfolio is still being assembled but is expected to consist of a mix of borrowers including some who are in receivership where the property is vacant and so the disposal of the loan will facilitate the return of the property into productive use, and other borrowers who are either unsustainable or uncooperative where they are renting the property but failing to pass some or all of the rent to the bank to service their loan obligations.

As the Deputy is aware in situations where there is a tenant in place their rights are not impacted by the sales process and are ultimately protected under the relevant tenancy laws, as such a tenant will avail of the same rights irrespective of whether the loan is owned by AIB or a third party.