Most IBRC staff to keep jobs until end of year

Friday 17 May 2013 20.40
IBRC's liquidators have until the end of the year to sell the bank's loans
IBRC's liquidators have until the end of the year to sell the bank's loans

Most of IBRC's 900 staff are expected to remain working with the bank's liquidator until the end of the year.

The development clarifies the position for staff, who until now were uncertain as to how long they would remain working in the bank.

About half of the workers are expected to be offered positions managing loans for a variety of other companies next year.

Around 150 staff will work for British group Capita, which yesterday announced it would double its workforce in Ireland to 1,600.

Workers who do not move to Capita are expected to be offered positions in other companies which buy loans.

It is expected that between 400 and 500 staff currently working in IBRC will continue to have employment next year.

The development came as the Government gave the liquidators, Kieran Wallace and Eamonn Richardson of KPMG, until the end of the year to sell off as many loans as possible.

Previously it had been expected the liquidators would have until the end of the summer to dispose of assets.

Unsold loans will transfer to NAMA.

A spokesman for the liquidator said: "This process requires the special liquidators to arrange for the independent valuation of IBRC's loan assets and to conduct an open and transparent sales process wherein assets will be sold, where offers are received that are equal to or in excess of the asset's valuation price."

Many of the loans will be sold in portfolios. Where they are being sold individually borrowers will have an opportunity to buy back their own loans.

Separately the Investor Compensation fund, which is financed by the financial services industry, has been told by the Central Bank investors in IBRC can be compensated by the fund.

It is not yet clear which types of investors will receive compensation. However, it could include shares held by IBRC and any PRSA pension accounts held by the bank.

The compensation would be limited to 90% of the compensatable losses, up to a maximum of €20,000.