Wednesday, 8 May 2013

Questions (65)

Pearse Doherty

Question:

65. Deputy Pearse Doherty asked the Minister for Finance further to the publication of the 2012 unaudited accounts for the National Asset Management Agency, the reason interest income increased in 2012 compared with 2011, despite loans decreasing by €3bn and the European Central Bank reducing its main interest rate from 1.0% to 0.75% in July 2012. [21638/13]

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Written answers (Question to Finance)

I have been advised by NAMA that interest and fee income of €1.39 billion recognised in its 2012 unaudited accounts principally comprises interest recognised on its loans and receivables in accordance with the effective interest rate method of accounting which accrues interest at a specified interest rate each year. Such interest recognised on loans and receivables does not necessarily correlate with ECB interest rate movements. This is further explained in Note 2.8 (Interest Income and Expense) on page 22 and Note 3 (Interest Income) on page 26 of the unaudited Section 55 accounts of National Asset Management Limited.