National Asset Management Agency

Dáil Éireann Debate, Tuesday - 12 June 2012

Tuesday, 12 June 2012

Ceisteanna (128)

Pearse Doherty

Ceist:

219 Deputy Pearse Doherty asked the Minister for Finance of the €13 billion of the €74 billion of loans acquired by the National Asset Management Agency that are being managed directly by the original banking institutions, the proportion of the €13 billion that has assessed business plans; if the participating institutions used independent professionals to analyse these business plans, or were there instances in which the business plans were analysed by bank staff who may have been involved in the original lending decisions or original loan management. [27949/12]

Freagraí scríofa

Minister for Finance (Deputy Michael Noonan)

I am advised by NAMA that the debtor business plans of close to 600 debtors managed by the participating institutions have now been assessed. Under a direction issued by NAMA to the institutions under Section 131 of the NAMA Act, staff of the NAMA Unit within the institutions may not be involved in the relationship management and administration of any loans or debtors with which they were involved prior to the establishment of NAMA. This means that debtor business plans are not analysed by staff involved in the original lending decisions or original loan management. I am advised that in the cases of the largest debtors which are directly managed by NAMA, third party professionals were used to analyse the debtor business plans. However, NAMA did not authorise the use of third party professionals for analysis of debtor business plans of those debtors who are managed directly by participating institutions.