Business Irish

Friday 15 December 2017

FitzPatrick got first Anglo loan in 1996, records show

Facility was provided to 'finance the purchase of commercial properties'

Emmet Oliver Deputy Business Editor

Anglo Irish Bank first advanced loans to its former chairman and chief executive Sean FitzPatrick in 1996 to buy commercial property along with other investors, new company filings show.

Mr FitzPatrick revealed in December 2008 that before each year-end, he temporarily transferred his loans out of Anglo to Irish Nationwide over an eight-year period.

He resigned upon making this statement and has declined to comment any further.

However, new accounts lodged in the Companies Office for Anglo Irish Mortgage Bank reveal fresh information about the loans.

This company, Anglo Irish Mortgage Bank, acquired an interest in three loans given for investments involving Mr FitzPatrick and other investors.

Anglo last night declined to comment. However, it is understood the reason the loans to Mr FitzPatrick were referred to by this company was because Anglo Irish Mortgage Bank issued covered bonds and under disclosure rules the loans to Mr FitzPatrick had to be revealed.

"During the period, the bank (Anglo Irish Mortgage Bank) acquired in the ordinary course of business, from its holding company, Anglo Irish Bank Corporation, an equitable interest in a loan to a partnership in which Sean FitzPatrick, a former director, was a partner,'' the accounts revealed.

This loan was for €3.5m, but has unpaid interest of €23,000.

"The facility was provided to finance the purchase of commercial properties.

It was initially advanced in August 1996, the most recent renewal was in November 2007 and it expired in September 2009,'' according to the accounts.

Other loans amounted to €21.2m and €42.5m.

It is understood Mr Fitzpatrick was first advanced loans in 1996 so he could invest, along with others, in property projects, many of them providing capital allowance tax relief.

The loans were secured on the property bought by the investors and not the entire loan was taken out by Mr Fitzpatrick. It is understood this is how the first loans arose.

According to accounts for Anglo Irish Bank covering the year to the end of September 1996, the bank disclosed loans to six directors worth £2.3m.

The bank did not provide a breakdown of which directors received the loans.

Irish Independent

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