Tuesday, 10 June 2014

Questions (170)

Stephen Donnelly

Question:

170. Deputy Stephen S. Donnelly asked the Minister for Finance further to the recent publication of the National Asset Management Agency Annual Report 2013, which states the need for vendor finance in 2013 may be reducing, and in view of the relatively attractive terms on which NAMA’s vendor finance is provided, if he is concerned at dysfunction in the property marketplace; and if he will make a statement on the matter. [24428/14]

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Written answers (Question to Finance)

As set out in NAMA's Annual Report and Financial Statements for 2013, which is available on the Agency's website, www.nama.ie, NAMA Vendor Finance was introduced in 2012 at a time when many potential investors were constrained by a lack of access to bank finance.  A number of market changes arising out of the improved landscape and increased activity in the Irish property market from 2013 suggest that the need for NAMA vendor financing may be reducing.  These include the prevalence of international investors with ready access to capital, a gradual increase in domestic bank lending and the introduction of Irish REITs as an alternative investment mechanism.  These developments point to recovery in the Irish property market place.