The Deputy will note that NAMA has acquired loans that are secured, in the vast majority of cases, by property assets, a detailed breakdown of which is available in NAMA's Annual Report and Financial Statements 2011. NAMA advises that, in the case of debtors that it manages directly, the value of art that it currently holds as security for its loans is of the order of €7.5 million. This relates to four debtor connections. NAMA further advises that art belonging to a fifth debtor connection has been sold for an amount of €1.9 million and that art belonging to a sixth debtor connection is currently on the market for sale. The Deputy will appreciate that it is not appropriate for commercial reasons to discuss the expected realised value of assets that are currently on the market. The Deputy will be aware that NAMA does not own nor does it sell assets, including art, securing its loans. The sale of these assets is undertaken and managed by their owners or, in enforcement cases, on behalf of these owners by duly appointed Insolvency Officer Holders.
NAMA advises that the sale of art by debtors and Receivers/Administrators is conducted in accordance with the prevailing market practice for that asset and the jurisdiction to which the sale relates. The strategies adopted, including the engagement of selling agents, are designed in all cases to maximise the realised proceeds from the sale of the art. I would also note that while it is the clear policy of NAMA itself to maximise the realised proceeds from all sales of assets securing its loans, it is also clearly in the absolute interest of NAMA debtors to maximise the realised proceeds from the sale of their assets in repayment of their debt. The Deputy will also note the legal, fiduciary and professional obligation on Insolvency Office Holders to maximise the realised proceeds from the sale of debtor assets. NAMA advises that sale arrangements applied for the disposal of art are a matter for debtors and appointed Receivers/Administrators in accordance with Agency guidelines and that it would not be appropriate for it to detail the future disposal strategies, including timelines, for the sale of art by debtors and Insolvency Office Holders.
