AIB agrees to appear before Oireachtas committee over debt write-downs

It is estimated that DJ Carey’s €9.5m debt was written down by about 80% when the sale of golf resort properties and a €60,000 settlement are taken into account. File Picture: Denis Minihane.

AIB has agreed to appear before the Oireachtas finance committee in relation to debt write-downs.

The appearance, due to take place on March 2, comes in the wake of the agreement reached with former Kilkenny hurler DJ Carey.

It is estimated that Mr Carey’s €9.5m debt was written down by about 80% when the sale of golf resort properties and a €60,000 settlement are taken into account.

Politicians have in recent days demanded answers from the bank on its processes for agreeing write-downs or debt forgiveness.

DJ Carey. File Picture: Brendan Moran/Sportsfile

Finance committee chair John McGuinness told the Irish Examiner that the committee has sent questionnaires to the bank and other financial institutions asking them for information on the process involved in granting a debt write-down.

Mr McGuinness said the committee will aim to establish whether the bank's systems are "robust and transparent".

AIB yesterday took the step of issuing a circular to staff on Mr Carey's deal.

On Tuesday, AIB head of retail Jim O’Keeffe wrote to staff telling them that “all appropriate avenues” to recover debts are exhausted before any debt write-down.