Banking Operations

Tuesday, 21 April 2015

Questions (300)

John McGuinness

Question:

300. Deputy John McGuinness asked the Minister for Finance if Allied Irish Banks has quantified the total value of the individual loans approved to fund the Bellfry investments No. 1 to No. 6; the number of individual loans approved and the value of each; if these loans are being repaid in accordance with the terms and conditions of the loan approval; if the individual staff member or manager who sold this product or approved the loan received commission or other reward for the arrangement; if he will confirm the fees charged by the bank relative to this investment; the name of the nominee representing the investors; if the bank has any exposure relative to what is due to be repaid to it; and if he will make a statement on the matter. [15449/15]

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Written answers

Minister for Finance

I have been informed by AIB that:

- All disclosures in relation to AIB's loan portfolios are contained in the Risk Management section (pages 60-138) of AIB's 2014 Annual Financial Report.

- AIB staff who were authorised to sell Belfry products were not paid commission or other reward for this arrangement.

- All fees charged by AIB in relation to the Belfry companies have been fully disclosed to investors. The initial placing fee/commission was detailed in the Investment Memorandum or Prospectus, as were AIB's annual fee arrangements. Additionally, AIB's fees have been detailed within the annual Financial Statements and these have been provided to investors since inception.

- Details of the nominee companies are contained within the Investment Memorandum or Prospectus for each company, and within the application forms which were signed by investors.

- AIB is not a shareholder in any of the Belfry companies.