Business Irish

Thursday 22 February 2018

Ganley shown minutes from Anglo Irish meeting on 'overcharging'

Declan Ganley
Declan Ganley

Roisin Burke

Businessman Declan Ganley was shown minutes from a meeting at Anglo Irish Bank that raise serious questions about how interest was applied to loans.

The Sunday Independent has seen an email from Mr Ganley where he relates: "Around October 13, 2010, I was shown minutes from an Anglo meeting that covered the issue." He goes on to use a notorious term that was familiar to many within the bank in relation to how interest was calculated.

What Mr Ganley was shown by a former Anglo executive concerned a major issue with interest rates. "The reason this former Anglo individual showed the minutes to me was that I had expressed some scepticism when he had first told me about the activity and he showed a copy of minutes to me, then explained the calculation and spread," Mr Ganley's email said.

"I have no personal or business interest in anything related to Anglo or its successors. My interest was motivated by my strong objections to the bank guarantee and what I suspected was an effort to firmly foist Anglo and others' losses on the Irish taxpayer, which unfortunately fully came to pass."

On Tuesday, Sinn Fein TD Padraig MacLochlainn submitted a parliamentary question on the matter to Finance Minister Michael Noonan.

Mr MacLochlainn asked the minister about reports in New York "concerning the overcharging of interest on Anglo loans" and asked if the minister's attention had been drawn to the case and whether provisions had been made by IBRC's special liquidator or Nama to deal with any financial compensation or the possibility of loans being declared void or becoming unsellable as a result of the case.

Mr Noonan said he couldn't comment on cases before the courts. He said he had been advised by IBRC's liquidators that in the Republic any claims in relation to the potential overcharging of interest would likely rank as unsecured creditors.

He said he was advised that the allegations were not expected to have a significant impact on loan sales.

The Sunday Independent last week reported that banking specialist Bankcheck, which has inspected hundreds of Anglo loans, estimates a possible €1bn "overcharge" could emerge.

Developer John Flynn and Chicago Spire tycoon Garrett Kelleher both have US court cases pending Stateside on this matter.

Irish Independent

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