Dáil Éireann Debate, Tuesday - 7 May 2013
149. Deputy Derek Nolan asked the Minister for Finance if the income of developers who are now being paid by National Assets Management Agency can be used towards reducing their insolvency debt; if the new personal solvency service will affect NAMA's dealing with debtors in any way; and if he will make a statement on the matter. [21412/13]
View answerAs has been previously advised to the House, NAMA seeks to ensure that income generated by assets securing its loans is applied towards repaying a debtor’s indebtedness to the Agency. 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.
The position outlined above does not apply to debtors against whom enforcement action has been taken, as their assets and asset income are under the control of insolvency practitioners appointed by NAMA. I am advised by NAMA that, whilst the relevant procedures for the new insolvency arrangements have not been finalised, it does not envisage the new arrangements will have a major material effect on its interaction with its debtors. In so far as there may be an impact, debtors will be considered on a case-by-case basis after implementation of the new insolvency regime but NAMA will abide by the statutory bankruptcy mechanism in all such cases.
