IBRC to repay €13bn debt by Q3

The full €12.9bn of debt owed by IBRC will be repaid by its special liquidators by the third quarter of this year, according to the latest progress report update.

The remaining €2.5bn in residual assets from the original €21.7bn portfolio will be sold by the end of this year. Tenders will soon go out for valuation and sale completion of the assets.

The full wind-up of IBRC is not possible until all litigation has been concluded, including actions taken by the Quinn family.

IBRC, which was managing the run-down of former Anglo Irish Bank and Irish Nationwide assets, was liquidated in February 2013 as part of the restructuring of the €27bn in promissory notes. Under the deal, the State was to pay €3.1bn in payments every March for the next 10 years.

Instead, the full cost of the promissory notes were wrapped up into a parcel of bonds with an average maturity of 35 years.

The savings to the exchequer are estimated at €20bn over the next 10 years.

A Nama subsidiary, National Asset Resolution Ltd, took a floating charge on the €12.9bn paid to the Central Bank for the €21.7bn nominal value of IBRC assets. So far, the special liquidators, KPMG’s Eamon Richardson and Kieran Wallace, have paid the subsidiary €10.9bn, with the balance scheduled to be paid by the third quarter.

IBRC was originally scheduled to wind down its portfolio until 2020, with operating costs over that period expected to reach €1.1bn. The liquidation costs of IBRC are estimated at €42m&. So far there have been sales costs of €70m for €20bn of loans.

Only 64% of the €1.8bn Irish Nationwide mortgage book has so far been sold. It is believed the remainder will be sold through portfolio, rather than offering individual mortgage holders the opportunity to buy back their mortgages.

Finance Minister Michael Noonan said: “I gave a clear message to the special liquidators that the best outcome must be delivered to creditors, which included the Irish taxpayer, and that the task should be completed within a strict deadline to minimise costs.

“This has been delivered. I am satisfied with the financial outcome of the liquidation to date, which has far exceeded our expectations and has not resulted in any further cost to the Irish taxpayer.”


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