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Minister for Finance welcomes success of the recent IBRC loan sales processes with over 90% of the €21.7bn loan book sold to third parties
Following the successful sale of the last of the major portfolio of assets brought to the market by the Special Liquidators of IBRC, the Minister for Finance, Michael Noonan T.D., today (1 April 2014) welcomed the success of the recent IBRC loan sales processes. Over 90% of the loan book has been sold to third parties, representing loan assets with a par value of approximately €19.8 billion out of a total book of €21.7 billion sold.
Project Stone, which consists of commercial real estate loans with a par value of €9.3 billion, has achieved total sales of 85% across a broad range of bidders. Project Sand, which consists of residential mortgage loans with a par value of €1.8 billion, has achieved sales of 64% to two individual buyers, namely Loanstar and Oaktree, both of whom have committed to service these books in accordance with the terms of the Central Bank Code of Conduct on Mortgage Arrears.
The success of these sales processes represents a significant milestone for the State in relation to the liquidation of IBRC and significantly limits the amount of assets that are now likely to transfer to NAMA as a result of this process.
In relation to today’s transaction, the Minister stated:
“This is a hugely successful outcome for the Special Liquidators which provides further strong confirmation of the renewed confidence of international investors in the Irish economy and its future prospects.
I am extremely pleased with how the special liquidation is progressing and it provides further confirmation that the decision taken by this government in relation to the Promissory Note transaction and the liquidation of IBRC was the right one.
These successful sale to third parties are finally breaking the link between Anglo Irish Bank and the Irish taxpayer. This link was a major factor in forcing the previous Government to seek EU and IMF assistance. The success of the liquidation ensures that no further calls will be made on the taxpayer over those already budgeted.
The Special Liquidators will continue to manage the wind down and liquidation of the remaining assets of the bank which is expected to continue for some time until all assets and liabilities of the bank are fully resolved.”