I propose to take Questions Nos. 141 and 142 together.
NAMA issued a Guidance Note on Upward Only Commercial Leases on 6 December 2011. The Guidance Note was intended to deal with situations where tenants of NAMA debtors could show that the rents they were paying were in excess of current market levels and, as a result, the viability of their businesses was threatened. In such circumstances, tenants were given an opportunity to seek NAMA's approval for rent reductions.
NAMA points out that, prior to issuing the guidance note; it had received and approved a substantial number of applications for rent abatements which it had processed on an informal basis. I am advised by NAMA that, in 2011 prior to the issuing of the Guidance Note, it received 114 direct applications for rent abatement. NAMA states that 113 of these applications were approved and one was refused.
I am further advised that, since 6 December 2011, NAMA has received 40 applications for rent abatements under the terms of the Guidance Note. Five of these applications were approved. Another two were ineligible as they related to properties which are not held as security by NAMA. As regards the remaining 33 cases, the applications are currently under review. In the majority of these cases, NAMA has, as per the Guidance Note, facilitated direct discussion between the landlord and the tenant and is awaiting the outcome of these discussions. In some of the cases, it is awaiting receipt of additional information from tenants. On receipt of the necessary information by NAMA, I am advised that the average turnaround time for decisions in respect of applications is six days and that the Agency works to a turnaround target of seven days.