Dáil Éireann Debate, Tuesday - 12 June 2012
224 Deputy Pearse Doherty asked the Minister for Finance following the recent publication of a special report by the Comptroller and Auditor General, the final total of the gross cost of due diligence and valuation of loans acquired by the National Asset Management Agency, the gross cost including NAMA’s costs and costs incurred by the participating institutions. [27954/12]
Amharc ar fhreagraI am advised by NAMA that it has incurred gross due diligence costs of €74 million in acquiring the portfolio of loans from the participating institutions. These costs include legal due diligence costs, loan valuation costs, property due diligence and audit costs. The loan valuation methodology approved by the EU Commission and used to value acquired loans makes an allowance for due diligence costs as a reduction from the acquisition value of the loans. Arising from this, NAMA was in a position to recover most of the costs of due diligence from the participating institutions. NAMA does not have access to data on participating institutions due diligence costs. However, AIB has advised that total costs to date incurred by AIB in relation to NAMA are circa €102 million.
IBRC has similarly advised that the total gross cost of loan transfers from the former Anglo Irish Bank to NAMA is c. €59.3m. Separately, the total gross cost of loan transfers from the former INBS to NAMA is c. €10.8m. These figures relate to all loan transfers made to NAMA across all jurisdictions.
Bank of Ireland's published annual reports and other relevant public disclosures made by the bank in relation to the costs of participation in NAMA included the costs of due diligence on loans sold to NAMA, within the overall costs of selling such loans to NAMA which costs, also included amongst other things, discount to the face value paid by NAMA. The cost of due diligence on loans sold to NAMA has not been separately disclosed by Bank of Ireland.
