Dáil Éireann Debate, Tuesday - 15 April 2014
182. Deputy Stephen S. Donnelly asked the Minister for Finance his views on the amount of revenue forgone to the State, since December 2009, as a result of section 172 of the National Asset Management Agency Act 2009, in view of the recent disposal of €800 million of par value loans, dubbed Project Pebble, by the Irish Bank Resolution Corporation to an entity linked to the borrower. [17566/14]
View answer183. Deputy Stephen S. Donnelly asked the Minister for Finance further to Parliamentary Question No. 59 of 4 March 2014, his plans to amend or revoke section 172 of the National Asset Management Agency Act 2009 in view of its discriminatory effect on borrowers with one State organisation, when another State-controlled organisation, namely the Irish Bank Resolution Corporation, is selling loans, at a discount to par values, to parties linked to the borrowers. [17567/14]
View answerI propose to take Questions Nos. 182 and 183 together.
Section 172 of the NAMA Act prevents the sale of assets to defaulting debtors. Prospective purchasers of assets controlled by NAMA debtors and receivers are required to sign a declaration under Section 172 confirming that they are not a connected party within the meaning of that section and of the NAMA Board's Guidance Note on the Disposal of Real Estate Assets by NAMA Debtors and Insolvency Office Holders. As this declaration, which has been a requirement since NAMA's establishment, precedes the evaluation and possible approval of any potential bids relating to the sale of assets under the control of NAMA debtors and receivers, there is no basis upon which to estimate the hypothetical impact on NAMA transactions arising from this provision. To date, I understand that NAMA has not encountered any difficulties in selling assets as a result of Section 172. As previously stated, the government does not see the requirement for a change to the legislation at this time.
