Tuesday, 2 July 2013

Questions (82)

Aengus Ó Snodaigh

Question:

82. Deputy Aengus Ó Snodaigh asked the Minister for Finance if the National Asset Management Agency is currently compiling a new portfolio of loans, similar to the grouping of loans behind the Project Aspen and Project Club initiatives, which will be sold on as a grouped asset; and if the sale of this portfolio will lead to a conflict of interest with the developer behind the loans able to advise any single third party with his particular expertise on the portfolio. [31883/13]

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Written answers (Question to Finance)

Decisions relating to the sale of loans or of properties that secure these loans are an operational matter for the Board of NAMA which is guided by its commercial mandate under the NAMA Act 2009. NAMA advises that decisions as to whether to sell loans or the assets securing them are determined by reference to whichever option will result in the best outcome for the taxpayer.

I am advised by NAMA that it has very clear rules regarding the open marketing of loans and all such sales are conducted in line with accepted international best practice. In line with this practice, as part of the formal loan sales process, potential purchasers are required to provide an undertaking that they will not engage with the debtor or other obligors at any stage during the sales process. Both debtors and potential purchasers are aware that the infringement of agreed protocols or undertakings may have an impact on NAMA’s decisions as to whether and to whom it sells a particular portfolio. Furthermore, where NAMA approves the sale of any loan or approves the sale of any secured property by a debtor, it requires a confirmation that the purchaser is not connected to the debtor or other obligors.