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'No doubt' AIB will be asked about major debt write-downs - Donohoe

Paschal Donohoe said conversations around 'the issue of solvency within our economy' need to be had
Jack Quann
Jack Quann

20.42 21 Feb 2023


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'No doubt' AIB will be asked a...

'No doubt' AIB will be asked about major debt write-downs - Donohoe

Jack Quann
Jack Quann

20.42 21 Feb 2023


Share this article


There is 'no doubt' that AIB should be questioned about major debt write-downs when it appears before the Oireachtas Finance Committee.

That's according to Public Expenditure Minister Paschal Donohoe, who was speaking amid calls for the bank to be brought before the committee.

The controversy surrounds the bank allegedly writing-down hurling star DJ Carey's debt from €9.5 million to €60,000.

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Minister Donohoe told The Hard Shoulder this will be discussed.

"AIB go in front of the Finance Committee of the Oireachtas very regularly, and I've no doubt when they're in front of them that matter will be raised with them," he said.

"However I do think we need to take great care in recognising that arrangements that banks make with their clients, that they are customer-bank relationships.

"They are entitled to a degree of privacy and confidentiality.

"I think it is appropriate, however, [that] we do have a broader debate regarding how we deal with the issue of solvency within our economy, how we deal with the issue of how we write-down debts - and what that means for a sense of fairness regarding how these issues are dealt with."

'It does raise questions'

Minister Donohoe said this question needs to be addressed.

"I think it's understandable that the media commentary and media reporting on an issue like this does raise questions and cause debates, regarding what should be the magnitude of changes that are made when banks and those they deal with are involved in negotiations regarding how debts are written-down," he said.

"I think it is understandable that this debate has arisen.

"I think we do need to recognise confidentiality between clients and banks, as I've said, but general discussion regarding how these issues are dealt with I do think is appropriate," he added.

A similar call was made by Minister of State Neale Richmond at the weekend.

Listen back to the full interview below:

Main image: The Public Expenditure Minister Paschal Donohoe in Newstalk studios. Picture by: Newstalk

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Finance Committee Oireachtas Finance Committee Paschal Donohoe Public Expenditure Minister The Hard Shoulder

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