Friday 24 November 2017

Where was the IBRC loan deal for mortgage holders?

Richard Curran

Richard Curran

The decision to liquidate IBRC is looking more and more like the right one.

The argument for keeping it alive was that a liquidation of the basket case bank might have prompted fire sales that would have yielded less money for the Exchequer than a more gradual wind down.

With very large chunks of IBRC's remaining assets now sold, the old Anglo Irish Bank is finally disappearing.

The delicate sale of loans connected with high-profile businesses such as Arnotts, TV3, Topaz and Davy Stockbrokers, seems to have gone smoothly.

However, we can't judge the level of success without knowing exactly what the sale price of each loan was.

But, with buyers for 84pc of the €2.5bn Project Evergreen loans lined up, just €400m of that portfolio looks set to go to Nama. The State agency needs these like a hole in the head. It is supposed to be shrinking not getting bigger.

Other IBRC bits and bobs hanging around include around €2bn in former Irish Nationwide home loans.

Nama won't want to take on these on in a hurry, but someone has got to do it.

They will most likely be bought at a bargain-basement price by someone willing to get their hands dirty by taking on the hassle, in order to make some money.

Still, it does grate a bit that so many borrowers can buy back their business loans from IBRC, probably at some discount, but that option wasn't open to mortgage holders.

Irish Independent

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