Two more years to liquidate the former Anglo Irish Bank
The government is expected to incur spending of around 16 million euros due to a two-year extension of the liquidation deadline of the former Anglo Irish Bank.
The failed bank, renamed Irish Bank Resolution Corporation (IBRC) in 2011, has been in liquidation since February 2013.
The two-year extension of the liquidation period means the process will not be completed until the end of 2024, said Finance Department Secretary General John Hogan.
The total cost of liquidation to the taxpayer was â¬ 294 million at the end of 2020, Hogan said.
The expected final bill is now estimated at a maximum of 327 million euros, he added. This represents a jump of 14 million euros from the 313 million euros projected as a final figure last December.
Mr Hogan said Covid-19 has had an impact on “the current realizable values ââof the remaining assets” as well as the “timely conclusion” of pending litigation over other assets.
He said the two-year extension will allow special liquidators “to get the best possible return for the taxpayer.”
The fall of Anglo, once the country’s most prominent mortgage lender, was the result of the liquidity crisis that hit the world’s banks from late 2007. The cost to the public purse thanks to a first plan 64 billion euro bailout from the country’s banks is estimated at around 40 billion euros.
Latest liquidation progress report says IBCR and KPMG special liquidators Kieran Wallace and Eamonn Richardson invoked the bank’s business continuity plan during the Covid-19 outbreak in March 2020 , so that the institution was able to ârespond effectively and quicklyâ.
He said that although there has been “limited disruption” to the operations and activities of the IBRC following the pandemic, it has nonetheless become necessary to delay the marketing of the bank’s remaining assets. to maximize their value.
At the same time, the IBRC commission of inquiry, created in 2015 to investigate a debt write-down of â¬ 119 million following the sale of the Siteserv company to billionaire Denis O’Brien, is expected to submit its final report on the issue to the government at the end. October 2021.
The commission, which has been extended numerous times, has provided nine interim reports to the government to date.