In its Business Plan published in July 2010, the Board of NAMA set out its debt repayment schedule. This is set out in the following table:
Debt Reduction Targets
Year
|
% of NAMA debt paid down
|
2013
|
25%
|
2015
|
40%
|
2017
|
80%
|
2018
|
95%
|
2019
|
100%
|
NAMA ran a number of scenarios which projected the Net Present Value outcome of its activities over its expected lifespan. The baseline Scenario A was based on expected asset recovery values at that time. The results are summarised below:
|
Scenario ARecovery of long-term economic value
|
Scenario BRecovery of long-term economic value plus 10%
|
Scenario CRecovery of long-term economic value less 10%
|
Amount recoveredfrom Assets
|
€44.7 billion
|
€49.2 billion
|
€40.2 billion
|
Amount of debtsecurities to beredeemed by NAMA
|
€40.5 billion
|
€40.5 billion
|
€38.5 billion
|
Net Present Value
|
€1.0 billion
|
€3.9 billion
|
-€0.8 billion
|
NAMA in its Annual Statement for 2012, which I recently laid before both Houses of the Oireachtas in accordance with the provisions of Section 53 of the National Asset Management Agency Act 2009, makes clear that asset recovery is not just dependent on sales of property.
This Statement, which is also available on the NAMA website at www.nama.ie, sets out NAMA’s objectives for 2012, which are (i) to make further progress towards achieving its overarching objective of the best achievable financial return for the State and (ii) to conduct its commercial activities in co-ordination with the objective of contributing to the economic and social development of the State.
There are a number of strategies that NAMA will pursue to achieve its objectives, of which the main ones are:
To agree detailed asset sales schedules with debtors,
To optimise NAMA cash flow from loans and debtors,
To adopt an active loan sales strategy,
To attract international investor capital,
To increase market activity in both commercial and residential property markets, through a number of initiatives.
Clearly, the rate of progress in the sales process will be impacted by the demand in the market and the availability of purchasers.
I understand that the NAMA Board is currently reviewing strategy to take account of developments since July 2010 when its Business Plan was published.