Wallace: Banks must observe realism in seeking repayments
Independent Dáil deputy and developer Mick Wallace has said that banks must be made observe reasonable measures when seeking to have out-standing loans repaid.
The Commercial Court today ordered the builder from Wexford to repay the €19m that he owes to ACC bank.
"I accept the judgement of the court. I borrowed the money. I can’t pay it back. That's my problem," he said.
In a statement this evening he added:
"I consented to the judgement by the court today against my company M&J Wallace Ltd and Mick Wallace personally.
"I accept the law of the land, my company borrowed the money, I personally guaranteed these borrowings, and now the company cannot pay it back.
"However, I do have serious reservations regarding the manner in which some banks are operating.
"While I have accepted full responsibility today for my company’s debt to ACC/Rabobank, I do believe that serious discussions must take place in relation to the lenders’ responsibility to their customers.
"Facilities repayable on demand are unrealistic. Though facility letters commonly state the right of the bank to do this, it was never anticipated that a bank would demand and expect full repayment overnight. Regulation needs to be put in place to ensure that the terms of every loan are realistic and that they reflect reasonableness.
"My company is clearly in a difficult place, owing money to subcontractors, the Revenue, and the banks. I sincerely regret this. We will continue to do our utmost to meet repayments and maximise the return to our creditors."
