Dáil Éireann Debate, Thursday - 13 July 2017
112. Deputy Michael McGrath asked the Minister for Finance the status of the expected net profits arising from the wind down of the NAMA; the expected date of completion; and if he will make a statement on the matter. [34244/17]
View answer197. Deputy Michael McGrath asked the Minister for Finance the status of the planned wind-up of NAMA; the portfolio that is remaining; the current estimate of the timeframe; the estimated financial outturn from the wind up of NAMA; and if he will make a statement on the matter. [34288/17]
View answerI propose to take Questions Nos. 112 and 197 together.
I currently have no plans to wind down the Agency prior to, or beyond, its current expected time frame. It is too early to speculate whether NAMA will have made sufficient progress on its three primary business lines - ongoing deleveraging; Dublin Docklands SDZ programme; residential delivery funding programme - that could warrant consideration of a dissolution date other than 2020 as originally envisaged.
The Deputy will be aware that, in-mid 2014, my officials produced a report under Section 227 of the NAMA Act, assessing the extent to which NAMA to end-2013 had made progress toward achieving its overall objectives and whether the continuation of NAMA was necessary for the purposes of the Act. I am required under the NAMA Act to conduct a further Section 227 review of NAMA no later than as of end-2018. This review will assess the extent to which NAMA has made progress toward achieving its overall objectives and determine whether NAMA remains necessary having regard to the purposes of the Act. Given NAMA's progress to date and expectations of continued progress toward achieving its overall objectives, I anticipate that the next Section 227 report will also give consideration to the various strategic alternatives regarding NAMA's orderly wind-down.
Regarding the time frame currently envisaged, I would refer the Deputy to page 13 of the 2016 NAMA Annual Report which states that "NAMA expects that its deleveraging work will be mostly completed by 2018 and its focus over the period from 2018 to 2020 will be on completing its Dublin Docklands SDZ and residential delivery funding programmes".
To date, NAMA has redeemed €29.7 billion of its senior debt, 98% of the €30.2bn originally issued. NAMA fully expects to redeem all of its remaining €500m senior debt by end-2017. NAMA also expects to redeem its subordinated debt of €1.6 billion in March 2020 and to return a surplus to the State once its work is completed. In this regard, the 2016 Annual Report states that NAMA's continued strong performance since inception means that the NAMA Board expects to return a terminal surplus to the State – currently estimated at €3 billion - upon completion of its work, subject to favourable market conditions prevailing.
Finally, the most recent details on NAMA's remaining portfolio are available in the Agency's 2016 Annual Report and Financial Statements, published on 1 June 2017. This is available on the NAMA website via: https://www.nama.ie/about-us/publications/annual-reports/. Page 46 of the report provides details on NAMA's outstanding portfolio. NAMA’s carrying value of loans at end-2016 was €3.9 billion. I expect NAMA's Quarterly Report for Q1 2017, which will provide a further update on the portfolio, to be published in the coming weeks.
