Dáil Éireann Debate, Wednesday - 16 January 2013
167. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Questions Nos. 179 to 182, inclusive, of 16 October 2012, if the National Asset Management Agency sells loans without placing such loans on the open market. [1549/13]
View answerI am advised by NAMA that its policy in relation to loan sales, as with the sale of properties by its debtors and receivers, is that they should, where practicable, be openly marketed. For this purpose, two panels of loan sale advisors have been approved for loan sales in the US and in Ireland/Britain/Europe. NAMA advises that, to date, it has chosen in a number of cases to sell loans through loan sale brokers in the US and in some continental European jurisdictions where the sale of loans is a widely practiced method of realising the value of the secured property. In Ireland and Britain the sale of loans has mainly been in response to approaches to NAMA by third parties. NAMA advises that, after receiving such approaches, loan sale brokers have been appointed to market the loans and to deal with offers from the original bidder and other interested parties.
NAMA advises also that in certain cases a loan sale may follow the open marketing of the related property. NAMA points out that in a limited number of cases where properties or portfolios of properties have been openly marketed, the preferred bidder has ultimately suggested acquiring the related loans rather than the properties, with the value of the loans fully reflecting the successful bid for the underlying property.
NAMA advises that in situations where an offer of full par value is received for a loan, there is no merit in further marketing the loan if NAMA has no entitlement beyond the full repayment of the loan. In such cases, a loan may be sold without open marketing.
