I propose to take Questions Nos. 59 and 64 together.
NAMA's approach to unencumbered assets is determined on a case-by-case basis by reference to its assessment of the best achievable commercial outcome in any given situation. It is not possible therefore to set out a general position in this matter. It is clearly the case, however, that, in line with its statutory obligation to achieve the best possible return for taxpayers over its lifetime, NAMA is required to seek as much additional security as possible in circumstances where the balances on a debtor's loans are more than the value of supporting collateral. This is necessary to ensure maximum loan repayment. In so doing, NAMA operates fully in accordance with the mandate given to it by the legislature.
In seeking to maximise its own position on behalf of taxpayers, NAMA is aware that other creditors, including international banks, will seek to do likewise and it is important that the taxpayers' position be protected to the greatest extent legally possible. In certain circumstances, NAMA is open to discussions regarding sharing arrangements with other creditors for unencumbered assets but, as outlined, this can only be considered on a case-by-case basis by reference to the unique facts of each case, including NAMA's position in the hierarchy of creditors. NAMA's view of a debtor's willingness to co-operate is based on a range of criteria, of which this is only one.
As the Deputy is aware, the Revenue Commissioners have significant rights regarding the collection of taxes and all creditors, NAMA included, must have due cognisance of these rights.
In referring to 'encumbered assets', I assume that the Deputy is referring to assets that are already pledged to NAMA. As with any secured lender, NAMA is clearly obliged to seek the realisation of assets that secure its loans.
NAMA has to date obtained charges over additional security with an aggregate value in excess of €800m, which represents a significant additional protection for Irish taxpayers.
