Wednesday, 27 February 2013

Questions (96, 97, 98)

Pearse Doherty

Question:

96. Deputy Pearse Doherty asked the Minister for Finance further to the announcement by the National Asset Management Agency on 21 February 2013 that it expects to realise about €750 million by reversing asset transfers by certain debtors and taking charges over previously unencumbered assets up from a previous estimate of €500 million money realised from these sources will be used to pay down debts owed to the taxpayer; if NAMA can confirm if any of these transfer reversals were made as a condition of approving a business plan; and if so, the volume and value of transfer reversals made under this condition. [10645/13]

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Pearse Doherty

Question:

97. Deputy Pearse Doherty asked the Minister for Finance further to the announcement by the National Asset Management Agency on 21 February 2013 that it expects to realise about €750 million by reversing asset transfers by certain debtors and taking charges over previously unencumbered assets up from a previous estimate of €500 million money realised from these sources will be used to pay down debts owed to the taxpayer, if NAMA can confirm the actual volume and value of asset transfer reversals achieved to date; and the basis for the valuation of the asset transfer reversals. [10646/13]

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Pearse Doherty

Question:

98. Deputy Pearse Doherty asked the Minister for Finance further to the announcement by the National Asset Management Agency on 21 February 2013 that it expects to realise about €750 million by reversing asset transfers by certain debtors and taking charges over previously unencumbered assets – up from a previous estimate of €500 million money realised from these sources will be used to pay down debts owed to the taxpayer, if NAMA can confirm if any consideration was provided to the developer or the transferee in return for agreement to reverse the transfer. [10647/13]

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Written answers (Question to Finance)

I propose to take Questions Nos. 96 to 98, inclusive, together.

NAMA advises that, to ensure that debtors repay their debt to their full capacity, it requires, inter alia, that they provide security over unencumbered assets not previously pledged as loan security, where such assets exist, and the reversal of asset transfers to relatives and others, where they have occurred.

NAMA advises that, in this way, since inception to date it has obtained charges over additional security with an aggregate value of approximately €642 million, and that it is in the process of taking security over further assets identified in the course of its intensive engagements with debtors. In the past week, the NAMA Chairman publicly stated that the Agency expects, after all negotiations have completed, to obtain about €750 million by taking charges over previously unencumbered assets and by reversing assets transfers by certain debtors. NAMA advises that the realised proceeds from these sources will be used to pay down debts owed to the taxpayer by these debtors.

NAMA advises that the granting of charges over additional security, where such security exists, is a required demonstration of a debtor’s willingness and capacity to work with the Agency to achieve the best possible outcome for the taxpayer and that debtors receive no consideration for providing such security as their NAMA debt obligations are generally in excess of such amounts provided to NAMA.