‘Measures’ promised on vulture funds issue; Finance minister pledges extra regulation but fails to set timeline

Finance Minister Paschal Donohoe has confirmed that he will introduce “additional measures” to deal with unregulated vulture funds that buy up distressed mortgages.

Mr Donohoe is expected bring a memo to Cabinet on the issue of vulture funds ahead of an opposition bill due to be debated in the Dáil tomorrow.

The minister said: “Across the coming period we will be putting in place the kind of additional measures and responses that we believe are necessary to deal with this.”

However, Mr Donohoe failed to set a timeline on when further regulations would be introduced stating that “across the coming period we will look at what kind of further measures are needed and will make them happen”.

Mr Donohoe has been under intense pressure to deal with the issue of unregulated vulture funds entering the Irish market to buy up large tranches of distressed loans and debt.

The issue came to a head when Permanent TSB — which is 75% owned by the State — announced its intention to sell 18,000 distressed mortgages.

Fianna Fáil is pushing the Government to ensure that vulture funds are regulated ahead of PTSB’s €3.7bn Project Glas portfolio selloff.

Fianna Fáil spokesman Michael McGrath, who met with Mr Donohoe last week to discuss the bill, has also called on the Government to put pressure on the Central Bank to review the code of conduct for mortgage arrears.

Mr McGrath said he does not mind if the Government bring forward their own bill as long as citizens are protected and vulture funds are regulated.

“What we are looking for is a shift in policy from Government to make sure that these funds are regulated,” said Mr McGrath.

Although Mr Donohoe has confirmed that he is looking at changes, he has failed to state clearly whether the Government is likely to fully accept the measures laid down in Fianna Fáil’s bill.

Mr Donohoe said: “What I said last week, and I met Fianna Fáil and Deputy McGrath on this matter, is while I believe the framework that we have in place at the moment is robust, of course I am willing to engage with anybody in the Dáil who has good ideas around how it can be strengthened further.”

Speaking with the Taoiseach in Dublin’s inner city, Mr Donohoe added: “I am in the process of reviewing Deputy McGrath’s bill. I think there are a number of elements in it that will be of help to dealing with the challenges that may develop and I will be updating Cabinet on it.

“I am satisfied that I will be able to come to an agreement in this bill or the implementation of it that would deal with that matter.

“As minister for finance, I am well aware of the concern that people have in relation to this matter, this is all coming from a direction that an independent regulator has issued in relation to the operation of the banks which the banks are required to follow.”

He said the Fianna Fáil bill “could and will play an element of our broader response back to it.”

“I will ensure through any changes that we need to make that we have the strongest regulation possible in place in those bills and I will be working on Deputy McGrath’s bill to see how we can integrate his ideas into that,” said Mr Donohoe.

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