NAMA’s significant record of achievement in this area indicates that it has adequate resources and has fully utilised these resources to support its efforts to gain additional security for its debtors’ loans. 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. These assets have been identified in a number of ways, including through the valuation and business review process and through searches of assets undeclared by debtors by NAMA’s dedicated asset search team.
As part of the business plan process, a sworn statement of affairs was requested from personal debtors and guarantors, including details of any unencumbered assets which might be available to support repayment capacity and of any transfers of assets in recent years by debtors to relatives and associates. In completing that statement of affairs, debtors were reminded that the provision of false or inaccurate information to NAMA is a criminal offence, under Section 7 of the NAMA Act.
As previously advised to this House, NAMA has referred two formal complaints to the Garda Bureau of Fraud investigation arising from a possible failure by debtors to fully disclose their assets and liabilities in their statement of affairs to the Agency. NAMA has also initiated cases in the Irish and English High Courts and in the US Courts for the reversal of asset transfers, including residential property, shares and other assets. €750 million in additional security represents significant further protection for the Irish taxpayer and underlines the determination with which NAMA has approached this area of its work.
