National Asset Management Agency

Dáil Éireann Debate, Tuesday - 22 May 2012

Tuesday, 22 May 2012

Ceisteanna (118)

Pearse Doherty

Ceist:

205 Deputy Pearse Doherty asked the Minister for Finance the terms upon which the National Asset Management Agency has provided the short-term funding to meet the Anglo promissory note payment due on 31 March; if he will confirm the amount provided by NAMA; the interest rate that will apply to NAMA’s contribution and consequently the amount of interest in monetary terms that will be paid to NAMA; if he will confirm that NAMA has provided the funding on an arms-length commercial basis at terms comparable to the terms that NAMA could otherwise obtain on the open market. [24847/12]

Freagraí scríofa

Minister for Finance (Deputy Michael Noonan)

Acting on my direction, on 29 March 2012 the NAMA Board approved the short-term facility with Irish Bank Resolution Corporation Limited (IBRC) collateralised by an Irish Government bond. The €3.06 billion facility was drawn on the 3rd April 2012. The maximum maturity under the direction is 90 days. The facility was provided on an arms-length commercial basis with interest accruing on equivalent commercial terms to the terms on the proposed IBRC — Bank of Ireland collateralised facility i.e. the margin for Bank of Ireland over ECB funding is 135 basis points (currently a 2.35% all-in rate). Based on the current maximum maturity date of the facility, 30th May 2012, the interest earned by NAMA would be €11.4 million.

I am advised by NAMA that the rate earned on this facility is within the range of returns achieved on NAMA's short-term investments.