Michael McGrath
Question:55. Deputy Michael McGrath asked the Minister for Finance the role he envisages for NAMA in the period ahead; when he expects the agency to wind up; and if he will make a statement on the matter. [46672/19]
View answerWednesday, 13 November 2019
Questions (55)
Written answers
NAMA held remaining debtor loans with a fair value of €1.73 billion at the end of Q2 2019. Much of NAMA’s remaining portfolio is secured by low-value, granular assets and realisation of these assets continues to require patient and extensive work on the part of NAMA.
In July 2019, I published the second Section 227 Review under the NAMA Act 2009 where NAMA estimated that it expects to hold a residual loan book with a carrying value of c.€300 million by the end of 2021. Much of these residual assets are either subject to ongoing legal proceedings or are secured by residential development sites that have the potential to deliver a significant value uplift beyond 2021.
On foot of the Section 227 review I have recommended that NAMA be allowed additional time to work through this residual loan portfolio to enable the Agency to maximise the value of this residual portfolio in the interest of the taxpayer and best fulfil its commercial obligations under Section 10 of the NAMA Act. To this end I have requested that NAMA submit a detailed wind-down plan for its ultimate dissolution to the Minister for Finance by the end of 2021, and its operations shall not continue past end-December 2025 at the latest.
It is not expected that NAMA’s extension will impact upon the timeline for the transfer of its expected €4bn surplus in the coming years.