Noonan says there will be no 'fire sale' of IBRC assets

Wed, Feb 13, 2013, 00:00

Minister for Finance Michael Noonan has said there will be no “fire sale’’ of IBRC assets following its liquidation.

“As part of the role of the liquidators, the assets of IBRC will be valued independently before being sold. Any assets not sold to third parties at or above the valuation price will be sold to Nama at the independent valuation.’’

Mr Noonan said this would ensure a “floor’’ price on IBRC assets, and that, where required, assets with limited sale potential could be worked through in the medium term by Nama rather than sold to the best available third party at any price.

“This Government’s approach is consistent and focused on the best outcome for the Irish State and its people.”

Mr Noonan said in recent months it had become evident that the complexity of issues around the establishment of the European single supervisory mechanism would impact on the time for achieving a comprehensive solution.

Promissory notes

It was decided, in this context, to progress the situation relating to the promissory notes as an initial step, and to seek an adjustment of the terms which underpinned the existing arrangement.

“Notwithstanding this we will continue to participate in the development of the ESM and the structure of the single supervisory mechanism to ensure that Ireland will benefit, on similar terms to other member states from developments in this regard.’’

Mr Noonan said the revised arrangement represented a major step forward in the restructuring of the banking sector, strengthening the Central Bank’s position and reducing the borrowing requirement and debt-servicing costs.

Ireland’s reputation

“These benefits, when coupled with making the necessary adjustments in line with our commitments under the programme of financial assistance, will serve to enhance Ireland’s reputation, reduce our risk profile and increase our prospects of re-entering the financial markets.’’

The Government, he said, had demonstrated once again the value of what could be gained from a carefully managed and sustained engagement: the maximum benefit for Ireland.

Fianna Fáil finance spokesman Michael McGrath said on the whole the deal was positive for Ireland, bringing undoubted benefits and helping to bring about economic recovery. The debate now needed to be broadened to the implications for citizens.

“I have said repeatedly it is important that ordinary people see a dividend in terms of practical measures which will boost their disposable income and support job-creation in this country.’’

Sinn Féin spokesman Pearse Doherty said the Government had failed to answer genuine questions about the deal. The rights of IBRC employees had been eroded.