IBRC Investigations

Wednesday, 28 November 2012

Questions (72)

Gerry Adams

Question:

72. Deputy Gerry Adams asked the Minister for Finance if, further to Irish Bank Resolution Corporation’s appearance at the Oireachtas Committee on Finance, Public Expenditure and Reform on the 31 of October 2012, he will detail the total cost to IBRC for the estimated 230 full-time people in the bank working on the National Asset Management Agency portfolio for 2010, 2011 and projected for 2012; if he will detail the total income for IBRC for 2010, 2011 and to date in 2012 generated from the remuneration of up to a maximum of ten basis points on the total gross quantum of NAMA loans; and if he will make a statement on the matter. [53217/12]

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Written answers

Minister for Finance

Participating Institutions' fees for services to NAMA are based on 10 basis points of loans managed or actual costs incurred, whichever is the lesser. IBRC have advised me that as disclosed in IBRC’s 2012 Interim Report (page 35), which covers the period from January to June 2012, NAMA were charged €15m in relation to the servicing of loans acquired from the Bank. The corresponding charge for IBRC for 2011 (Annual Report page 60), was €28m (includes former INBS for H2 2011) and for the former Anglo Irish Bank for 2010 was €7m. I am further advised that income received from NAMA covers the cost of the Bank servicing the NAMA portfolio in 2011 and H1 2012. In 2010, there was a small net cost incurred by the former Anglo Irish Bank for servicing the NAMA portfolio. On 1 January 2011, the maximum amount that could be recharged to NAMA increased to 10 basis points of loans being serviced on their behalf.