Minister for Public Expenditure Paschal Donohoe says there is "no doubt" that AIB will be questioned about large debt write-downs when it appears before the Oireachtas Finance Committee.
Last weekend it emerged that retired hurler DJ Carey had his debt written down from €9.5 million to €60,000 in a settlement six years years ago.
In an interview on the Hard Shoulder on Newstalk Minister Donohoe said that AIB appears in front of the Finance Committee of the Oireachtas very regularly.
"I've no doubt when they're in front of them that matter will be raised with them
"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 that it is "understandable" that certain questions are being raised.
"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.
"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."
Meanwhile, over the weekend Fine Gael Minister of State for Employment Affairs, Neal Richmond, called on AIB to appear before the Oireachtas Finance Committee to address the DJ Carey case.
Speaking on RTÉ’s Saturday with Colm Ó Mongáin, the Minister said that whilst the state had effective ownership over AIB at that point (the point of the Carey settlement), they didn’t have policy direction over the bank.
"And nor they do they at the moment. But I think like anyone reading that story, it is extremely worrying. I’d like to see AIB come before the Finance Committee to lay out exactly the nature of this. And indeed were there other write downs like this and to explain and have the debate.”
