Dáil Éireann Debate, Wednesday - 29 September 2010
433 Deputy Ruairí Quinn asked the Minister for Finance in view of the comments made by a person (details supplied) in April 2010, when does he expect NAMA to start foreclosing on bankrupt developers who had offered personal guarantees on their loans; the actions, if any, NAMA is taking to prevent the transfer of assets to spouses to avoid seizures of family homes; and if he will make a statement on the matter. [32197/10]
Amharc ar fhreagraThe first tranche of loans owed by the largest property developers transferred to the National Asset Management Agency in May 2010 and a second tranche was transferred in July and August. Following the transfer of an individual's loans to NAMA, each borrower is requested to complete a realistic and concise business plan. I am informed by NAMA that this business plan should set out their current situation including their levels of indebtedness to non-NAMA institutions, a full list of assets and liabilities and the borrower's short, medium and long-term objectives.
The business plan of each major borrower is assessed by NAMA to assess its viability. Where viability cannot be demonstrated or where a borrower is not co-operating with the process NAMA will take enforcement action against the borrower concerned.
The NAMA Board has stated clearly in its recent Business Plan that it will enforce personal guarantees to the greatest extent feasible, that it will secure all unencumbered assets and that it will pursue any assets transferred to third parties. Where NAMA does engage in any type of enforcement, it will have to go through the courts in the normal way and information on such cases will be in the public domain. I am informed that NAMA has already commenced proceedings in the Commercial Court in respect of one developer and that further actions can be expected.
