Dáil Éireann Debate, Thursday - 28 February 2013
19. Deputy Michael Colreavy asked the Minister for Finance his views on the treatment of developers at the National Asset Management Agency, following reports that certain developers with substantial loans in NAMA continue to enjoy lavish lifestyles; and his views on the €200,000 NAMA allowance certain developers enjoy. [10571/13]
View answerIt is unclear what reports the Deputy is referring to. As has been previously advised to the House, NAMA seeks to ensure that income generated by assets securing NAMA loans is applied towards repaying a debtor’s indebtedness to NAMA. In certain circumstances, debtors are allowed to retain a portion of asset income in lieu of overheads which include staff costs. NAMA also seeks to obtain charges over a debtor’s unencumbered assets and to realise such assets so as to further reduce indebtedness. Clearly, however, NAMA has no control over the application of income generated by assets securing loans which have been advanced to debtors by other financial institutions.
The Deputy will be aware that where the evidence available to NAMA is that a debtor has failed, as part of a sworn statement of affairs, to disclose all his assets, he will be faced with very serious consequences. NAMA has made it clear that it will not work with debtors who fail to co-operate fully and openly with it. NAMA will also pursue through the courts debtors who fail to co-operate with it in terms of agreeing to the reversal of asset transfers or to the granting of legal charges over unencumbered assets.
