Dáil Éireann Debate, Tuesday - 18 September 2012
290. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question No. 217 of 12 June 2012, if he will confirm that when he refers to the term "break even", he means the redemption in full by National Asset Management Agency of its senior debt, but that he does not mean the redemption in full by NAMA of its subordinated bonds which had a value of €1.595 billion in July 2012. [38509/12]
View answerNAMA's primary commercial objective, as set out in Section 10 (2) of the Act, is to obtain the best achievable financial return for the State having regard to the cost of acquiring and dealing with bank assets and its own cost of capital and other costs. I am advised that the Board of NAMA aims to recover all costs incurred in acquiring and managing assets over the lifetime of NAMA and further aims to return a surplus to the Exchequer. In terms of the prioritisation of targets, it regards redemption of all Senior Bonds (which carry a State guarantee) and the recovery of carrying costs and capital expenditure as the objective which it must seek to achieve first. I am informed that redemption of subordinated debt is a major objective of the Board, in line with its statutory remit under Section 10 (2).
