NAMA Transactions

Dáil Éireann Debate, Wednesday - 17 September 2014

Wednesday, 17 September 2014

Questions (269)

Stephen Donnelly

Question:

269. Deputy Stephen S. Donnelly asked the Minister for Finance if he will provide an update on the provision of vendor finance by the National Asset Management Agency; the gross amount provided to date; the total repaid to date; the total outstanding today; the total available for buyers of NAMA assets today; the way in which NAMA's vendor finance will operate in light of recent announcements which anticipate an earlier than planned conclusion to the work of NAMA; and if he will make a statement on the matter. [34250/14]

Written answers

Minister for Finance

I am advised by NAMA that it has advanced €373m to date in vendor finance and that, taking account of the net impact of cash receipts, interest accrued and currency movements, €356m remains outstanding.

As the Deputy may be aware, NAMA indicated in May 2012 its willingness to provide up to €2 billion in vendor finance, if required, to facilitate investment in Irish commercial property.  I am advised that demand for vendor finance has been less than was initially anticipated and that the main reasons for this have been 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.   I do not propose to comment on the particular terms and conditions of particular vendor finance transactions as this is a commercial matter for NAMA. An information document on vendor finance is available on the NAMA website www.nama.ie.