Dáil Éireann Debate, Wednesday - 17 September 2014
260. Deputy Stephen S. Donnelly asked the Minister for Finance if the objective of the National Asset Management Agency is to break even by the time it concludes its operations and if such an objective requires NAMA to generate a profit to offset its cumulative loss, and whether the NAMA objective of breaking even equates to a net annual return on assets under management of approximately 0.3% per annum for each of the next six years. [34241/14]
View answerIn early 2013 after the appointment of Special Liquidators to IBRC, the State had a contingent liability of €43 billion, including NAMA's State-guaranteed senior bonds. By the end of 2015, this contingent liability will have fallen to €15 billion.
I am advised that one of NAMA's key objectives, over its projected life, is to redeem, at a minimum, the Senior Bonds issued as consideration for loans in addition to recovery of its carrying costs and recovery of working and development capital expenditure advanced to debtors. I am advised that, by the time it concludes its operations, based on the assumption that current market conditions will be sustained, NAMA expects that it will be in a position to repay its senior and subordinated debt and it is optimistic that it may also generate a surplus for the taxpayer. However, at this point, it is too early to speculate as to the scale of any potential future surplus and, by extension, the ultimate return that will be achieved on its acquired assets.
