Written answers

Tuesday, 17 May 2022

Photo of Gerald NashGerald Nash (Louth, Labour)
Link to this: Individually | In context | Oireachtas source

265. To ask the Minister for Finance his views on the potential sale of the tracker mortgages of a bank (details supplied) to another bank in which the State owns a majority shareholding; if the transfer of this performing loan book will be transferred at a discounted rate; his views on whether the affected tracker mortgage customers should also be permitted to avail of any potential discounted rate provided to the receiving organisation upon the sale of these tracker mortgages and that they should be offered the option of repayment at any given discounted rate; and if he will make a statement on the matter. [24887/22]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I wish to highlight, as Minister for Finance, I am precluded from intervening in commercial and operational decisions in any particular bank, even one in which the State has a shareholding. Decisions in this regard, including this potential transaction, are the sole responsibility of the board and management of the banks, which must be run on an independent and commercial basis. The bank's independence is protected by a Relationship Framework which is a legally binding document that cannot be changed unilaterally. This framework, which is publicly available, was insisted upon by the European Commission to protect competition in the Irish market.

Notwithstanding the above, Department of Finance officials contacted AIB in relation to this matter and received the following response:

"AIB Group announced last month that it is has entered into exclusive discussions with NatWest Group plc for the acquisition of the Ulster Bank performing tracker mortgages portfolio. Any potential transaction remains subject to negotiations and agreement and the Bank cannot comment any further at this point."

The successful conclusion of this transaction by AIB would be very positive in providing a significant number of Ulster Bank customers with certainty as to the destination of their mortgages. I am hopeful that these discussions will lead to a successful outcome, however, I do appreciate that the conclusion of this transaction is subject to normal due diligence, agreement of final terms, as well as obtaining appropriate approvals.

Photo of Gerald NashGerald Nash (Louth, Labour)
Link to this: Individually | In context | Oireachtas source

266. To ask the Minister for Finance the number of tracker mortgages that are held by an organisation (details supplied); the average number of years left per tracker mortgage customer; the average loan amount per tracker mortgage customer; and if he will make a statement on the matter. [24888/22]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

As the Deputy is aware, AIB recently announced that it has entered into exclusive discussions with NatWest Group for the acquisition of circa €6 billion Ulster Bank performing tracker (and linked) mortgages. I welcomed that announcement as, if it leads to a successful outcome, it would provide a significant number of Ulster Bank customers with certainty on the destination of their mortgages.

However, the details and decisions in relation to this potential transaction, including details of the particular loan book, are commercial matters for the respective parties and any potential transaction remains subject to negotiations and agreement as well as obtaining appropriate approvals.

Also, from a regulatory perspective, I have been informed by the Central Bank of Ireland has advised that due to its data confidentiality obligations it does not does not publish data on individual institutions.

Comments

No comments

Log in or join to post a public comment.