Tuesday, 19 February 2013

Questions (279)

Pearse Doherty

Question:

279. Deputy Pearse Doherty asked the Minister for Finance if he will set out the safeguards that the National Asset Management Agency has in place to prevent loans which it sells to third parties being re-sold to the original debtors who might be in default of loans to NAMA. [8753/13]

View answer

Written answers (Question to Finance)

I am advised by NAMA that when it approves the sale of any loan or approves the sale of any secured property by a debtor or receiver, it requires a confirmation that the purchaser is not connected to the relevant debtor. NAMA advises that the term ‘connected’ is widely defined to cover anyone acting on the debtor’s behalf. This is to ensure that the transaction can be truly considered to be at arm’s length. Having ensured, as far as possible, that such primary sales are not made to the relevant debtors or to connected parties, NAMA advises that it has no legal right to intervene in any further future sales of the loan or property in question.