Ireland

The Central Bank has urged banks to adopt caution when writing back problem loans due to the improving property market, as it also warns that the forthcoming maturity of a large proportion of bank debt could impact negatively on bank profitability, the Irish Times reported. At the publication of the Central Bank’s second Macro Financial Review for 2014, the Central Bank urged banks “to be cautious” when it comes to releasing loss provisions.

More than 23,000 defaulting mortgage holders are facing the prospect of legal action to repossess their homes and investment properties as banks step up efforts to confront the arrears backlog, the Irish Times reported. New figures from the Central Bank suggest that banks had proposed solutions for 93 per cent of arrears cases by the end of September, exceeding their year-end target to propose solutions in 85 per cent of cases. In almost half of those cases, however, the proposed solution involves loss of ownership.

The Kutuzoff Tower in Moscow, the most valuable of the foreign properties that were once owned by the children of the bankrupt businessman Seán Quinn, is likely go up for sale next year. The office block, which two years ago was considered to have a value of approximately $180 million, is the subject of a bankruptcy process overseen by the Russian courts that involves a requirement to liquidate the asset, the Irish Times reported. The deadline for putting the building up for sale is likely to be early next year.

A group campaigning against proposals to introduce 20 per cent deposit requirements on new mortgage applicants will deliver a petition to the Central Bank tomorrow, the Irish Times reported. The Central Bank plan, which were initially announced in October with Monday set as the deadline for submissions under a consultation process, is designed to prevent the emergence of a new property bubble. Under the proposal, borrowers would be required to have a 20 per cent deposit when purchasing a property, although there would be some exceptions.

Berlin has backed the Irish Fiscal Advisory Council’s warning about the dangers of the Government departing from its path of consolidation and reform, the Irish Times reported. In a paper the federal finance ministry said Ireland’s “awareness of its problems and reform courage” were crucial in identifying and tackling its challenges. All the more reason, it added, not to let up now with consolidation. “I would be unrealistic to expect macroeconomic imbalances built up over a long time to be addressed in a short period,” the paper noted.

Property developer Sean Dunne has thrown in the towel on his attempt to walk away from about €700 million in debts through the US bankruptcy courts, the Irish Times reported. In a major victory for the National Asset Management Agency, his biggest creditor, Mr Dunne has abandoned his bid to seek a fresh financial start.

A dispute over whether bankrupt developer Seán Dunne validly transferred various property assets to his wife Gayle, including a hotel in South Africa, is to be fast-tracked by the Commercial Court, the Irish Times reported. Mr Dunne has debts of up to €700 million and Chris Lehane, the official administering his bankruptcy, has brought proceedings against Gayle Dunne seeking to set aside purported agreements under which Mr Dunne allegedly transferred his interest in a number of properties in Ireland and South Africa to his wife.

The Central Bank of Ireland has proposed a raft of new regulations for credit unions, covering a number of areas including reserves, liquidity, lending, investments, controls, and reporting requirements, the Irish Times reported. The draft regulations are designed to ensure that “appropriate limits and requirements” are in place for the credit union sector. Under the new rules, the maximum amount that somebody can save with a credit union will be limited to €100,000, half the level currently in place.

Members of the family of bankrupt businessman Sean Quinn want court orders permitting them cross-examine Irish Bank Resolution Corporation special liquidator Kieran Wallace regarding claims they may be hiding up to €500 million in undisclosed assets from the bank, the Irish Times reported. The Quinns say those claims, made on foot of information from unidentified informants, are “scurrilous lies”. Despite orders obtained by IBRC from the London and US courts for disclosure of documents, nothing has been obtained to support the allegations, they also say.

The liquidator of Irish Bank Resolution Corporation has secured a preferred bidder to acquire the assurance arm of the former Anglo Irish Bank, the Irish Times reported. The new owner of the unit is understood to be a large European investor, though the deal remains the subject of final due diligence and regulatory approval. The Department of Finance has to approve any major sale of the bank, whose liquidation is being handled by accountancy firm KPMG. IBRC Assurance has a range of property investments made on behalf of the self-administered pension funds of hundreds of clients.