National Asset Management Agency

Dáil Éireann Debate, Tuesday - 12 June 2012

Tuesday, 12 June 2012

Ceisteanna (126)

Pearse Doherty

Ceist:

217 Deputy Pearse Doherty asked the Minister for Finance following the recent publication of a special report by the Comptroller and Auditor General, if he will confirm that he accepts the judgment that the National Asset Management Agency will face considerable challenges in achieving its income goal in order to break even by 2020; if he will confirm that if there is any shortfall in NAMA’s financial position by 2020, it is the State that will underwrite any loss. [27947/12]

Freagraí scríofa

Minister for Finance (Deputy Michael Noonan)

I am advised by NAMA that its Board has recently completed a review of its strategy and has re-affirmed its expectation that NAMA will at least break even over its projected ten-year lifetime, meaning that it is on course to recoup for the taxpayer, at a minimum, the Senior Bonds issued as consideration for acquired loans in addition to recovery of its carrying costs and the working and development capital expenditure it has advanced to debtors. Based on the Agency's record to date, I have no reason to doubt the Agency's confidence that it will achieve its targets over its lifetime.

I refer the Deputy to Section 225 of the National Asset Management Agency Act 2009, which sets out the circumstances in which a surcharge may be applied to the participating institutions if there is a shortfall in NAMA's financial position following the completion of NAMA's operations. Section 225 was included specifically to avoid a situation where the State would have to underwrite any loss that NAMA may make.