Dáil Éireann Debate, Tuesday - 18 September 2012
289. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question No. 213 of 12 June 2012 and following the publication on 25 July 2012 of the National Asset Management Agency report and accounts for the three months ending 31 March 2012, the proportion of loans that are now performing by reference to the original loan agreement. [38508/12]
Amharc ar fhreagraI would like to direct the Deputy to page 9 of the NAMA Section 55 Report for the first quarter of 2012 which states that, as at 31 March 2012, 19% of the loans acquired by NAMA were classified as performing by reference to the nominal loan amount (i.e the original loan agreement). These include restructured loans. NAMA estimates that the loan restructures enhance the proportion of loans classified as performing loans by 2%. It should be noted that this classification of performance is primarily by reference to legacy loan facility obligations. It should be noted that the 19% cited above, translates to 29% by reference to acquired loan value.
NAMA advises that one of its key objectives is to manage its debtors and receivers so as to capture, for debt servicing purposes, income (principally rental income) from their property assets. Such income capture was not widespread prior to NAMA's acquisition of the loans and NAMA has launched a major drive to achieve this objective. NAMA measures its performance, in part, by the extent to which it captures such income on an on-going basis and not wholly on the extent to which a debtor is in compliance with the terms of legacy loan facility arrangements which predate NAMA loan acquisition.
Please also refer to Section 22.5 of the Annual Report for further information regarding the credit quality of loans and receivables.
