Court ordered to pay bank 20m euros

DUBLIN: A court ordered a colourful independent opposition Irish politician on Monday to repay almost 20 million euros ($27 million) in bank loans, raising the possibility that the builder could face bankruptcy and have to quit parliament.

Irish property developers erected swathes of apartments and office blocks thanks to years of reckless lending during the go-go period of the "Celtic Tiger" economy, but suffered heavy losses after the bubble burst in spectacular fashion.

Mick Wallace, known for wearing pink shirts to parliament and sporting a shock of long, unkempt blond hair more akin to an ageing rock star than a politician, faced court action after his construction company was declared insolvent.

Dutch lender Rabobank's Irish unit, ACC Bank, was told by Ireland's commercial court that it could take steps to recover the 19.1 million euros loaned to Wallace between 2004 and 2008, for which he had provided personal guarantees.

"I'm not in a very good position but I accept the judgment of the court. I borrowed the money, I can't pay it back so that's my problem," Wallace, elected to Dublin's lower house for the first time this year, told reporters outside the court.

"As a public representative, I've a large responsibility to uphold the law of the land and that's what I'm doing... I've no idea what may happen next."

Wallace, who also coaches a junior football team in his spare time, would be forced to resign from parliament if he is made bankrupt but analysts said it may not be worth the bank pursuing such draconian measures.

"They may wish to put the judgement against any properties Mr Wallace owns or they could proceed to bankruptcy but that would be a fairly draconian step," Graham Kenny, a specialist in examiner-ship proceedings with Lyons Kenny solicitors, told Reuters.

Copyright Reuters, 2011