Dáil Éireann Debate, Tuesday - 16 October 2012
179. Deputy Pearse Doherty asked the Minister for Finance if he will confirm the procedure adopted by the National Asset Management Agency when selling loans under its control, so as to maximise the return to the taxpayer from such disposals. [44286/12]
View answer180. Deputy Pearse Doherty asked the Minister for Finance if he will confirm that the National Asset Management Agency does not sell loans under its control for less than the original book value plus accumulated interest to the point of disposal, unless there is a competitive bidding or tendering process. [44287/12]
View answer181. Deputy Pearse Doherty asked the Minister for Finance if he will confirm that the National Asset Management Agency has sold loans, or allowed loans to be refinanced out of NAMA, at less than the original book value plus accumulated interest to the point of disposal; and if it has, if the relevant debtor has obtained any financial advantage through debt forgiveness or debt write-down from these transactions. [44288/12]
View answer182. Deputy Pearse Doherty asked the Minister for Finance if he will confirm the cash received by the National Asset Management Agency since its inception in respect of the sale of loans; the total original book value of the loans plus interest accruing to the point of disposal and the total NAMA acquisition value of the disposed loans. [44289/12]
View answerI propose to take Questions Nos. 179 to 182, inclusive, together.
I am advised by the National Asset Management Agency (NAMA) that since inception to 31 March 2012 it has sold loans with a nominal value of €1.9 billion, and generated €7.2 billion in cash receipts from borrowers. (see page 3 of NAMA Quarterly Report, 31 March 2012 for additional detail)
The Agency advises that net profit on disposal of loans is recorded in its Section 55 Quarterly Accounts and in its year-end consolidated income statement. The cumulative amount to 31 March 2012 is €89.7m. These documents are available on the Agency’s website, www.nama.ie. The Section 55 Quarterly Accounts for the three months ending 30th June 2012 are currently being considered by Government and will be laid before the Houses of the Oireachtas in due course.
The Agency advises that in the case of a loan sale, it disposes of the entire par debt and that therefore the matter of debt compromise does not arise. For the debtor, the only change is that there is a new loan note holder. NAMA operates a phased an orderly programme of disposal of both assets and loans to achieve the best possible outcome for the taxpayer.
The Agency advises further that it has launched an active loan sales process, having recently established two sales advisory panels one for Europe and one for the US. NAMA’s objective in any loans sales transaction is to achieve the best outcome for the taxpayer. In this context, the disclosure of the additional information sought by the Deputy could adversely affect the Agency’s competitive position. Providing such information would be commercially counterproductive for the taxpayer as it would be of greatest benefit to potential loan purchasers.
