Written answers

Thursday, 1 June 2017

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

78. To ask the Minister for Finance the amount he expects the State to receive from the liquidation of IBRC; when he expects the State will receive it; the use the proceeds will be put to; and if he will make a statement on the matter. [26437/17]

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

As set out in the most recent progress update of 5 May 2017 (which is available on the Department of Finance website ), the Special Liquidators have cash receipts of €1.9bn on hand as at 6 February 2017.

In December 2016, the Special Liquidators commenced the payment of an interim dividend of 25% to all admitted unsecured creditors of the liquidation, including the State who is the largest creditor. Department of Finance related claims in the region of €1.12bn were submitted to the Special Liquidators of IBRC which has resulted in an interim dividend of €280m being paid thus far. I am also aware that other State entities have submitted claims but these are a matter for those entities.

As per the most recent progress update report of 5 May 2017, the Special Liquidators have advised that it is their expectation, 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, and timing of same, cannot be known until such time as all loan assets are sold, the total level of adjudicated creditors is finalised and 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 is considered an intra-government payment with no impact on the deficit. Such payments do however improve the exchequer borrowing requirement as the cash received increases the cash balances in the Central Fund and thereby reduce the required level of borrowing.

Comments

No comments

Log in or join to post a public comment.