Dáil Éireann Debate, Wednesday - 13 June 2012
59 Deputy Pearse Doherty asked the Minister for Finance the full terms under which the National Asset Management Agency provides staple financing or vendor financing to buyers; and if he will lay a copy of the standard terms for the provision of such financing before the Dáil. [28479/12]
Amharc ar fhreagraI am advised by NAMA that there is no single standard set of terms for stapled debt which NAMA may offer to parties acquiring commercial property from NAMA borrowers or receivers. Terms quoted will vary to reflect the attributes of various commercial property categories and individual properties, the varying strengths of tenants and leases, and the strength of counterparties/property purchasers. NAMA advises that only strong and reputable counterparties will be considered for stapled finance. For instance, NAMA advises that for prime investment properties, that is properties whose investment characteristics include, for instance, good location and strong tenants on leases with long maturity at realistic rents, which would qualify for the most generous loan terms, NAMA may offer up to 70% of the purchase price for a period of 5 years at a typical interest margin of 3% over cost of funds.
