The values at which eligible bank assets were acquired by NAMA were determined in accordance with regulations made by the Minister for Finance in March 2010, using a methodology approved by the European Commission. The process valued loans by calculating the present value of the cash flows associated with the loans' underlying collateral. All property collateral was valued by professional valuers in accordance with international valuation standards. The rates used to discount the cash flows to present values (NAMA discount rates) were set down in the regulations. The Deputy will note that Section 79 of the Act and the associated valuation regulations set out detailed criteria to be taken into account in determining the long-term economic value of property and of bank assets.
The Deputy may wish to note that extensive information on the NAMA loan acquisition process, including the valuation of loans, is set out in NAMA's Annual Report and Financial Statements for 2010 and in the three special reports on NAMA published by the Comptroller and Auditor General: Special Report on NAMA Acquisition of Bank Assets, October 2010; Special Report on NAMA Management of Loans, February 2012; and Special Report on NAMA Progress 2010-2012, May 2014. These reports are available on the NAMA website, www.nama.ie.