Finian McGrath
Question:355 Deputy Finian McGrath asked the Minister for Finance if he will respond to a query (details supplied). [33979/09]
View answerTuesday, 6 October 2009
Questions (260)
Written answers
Firstly, I should clarify that it is not the case that borrowers whose loans are transferred to NAMA will in some way benefit from the transfer or have improved terms and conditions. It is important to note that the establishment of NAMA is in no way intended to protect or bailout borrowers. The amount a borrower owes will not change because of the transfer of a loan to NAMA. The NAMA Bill provides the Agency with a wide range of powers it needs to pursue borrowers and enforce security. The Agency will have a statutory duty to maximise the return on the loans transferred in the interest of taxpayers and will be expected to use all the powers available to it to achieve this objective.
It is intended a minimum threshold of €5m will apply to certain loans eligible for transfer to NAMA. It is proposed currently that this limitation will apply only to certain of the larger institutions that have indicated they will apply to be designated as participating institutions. The application of this €5m threshold is expected to generate significant efficiencies for NAMA while ensuring the goal of cleansing the balance sheets of participating institutions is achieved. Loans below the €5 million threshold will continue to be managed in the normal manner by the institutions concerned.