Dáil Éireann Debate, Tuesday - 3 October 2017
111. Deputy Barry Cowen asked the Minister for Finance the sum advanced to developers by NAMA in loans; the percentage of this sum currently repaid; the quantum of loans in arrears; and the percentage of loans in arrears. [41516/17]
Amharc ar fhreagraIn order to meet its primary objective of obtaining the best achievable financial return for the State from its acquired loans, NAMA may provide funding to its debtors and receivers to protect and enhance their assets so as to optimise their income-producing potential and disposal value.
Since inception, NAMA has advanced loans to its debtors and receivers for a range of purposes, primarily for capital expenditure purposes but also for essential current expenditure required to protect the value of assets including remedial works, health and safety requirements, security and insurance.
The Deputy will be aware that NAMA’s objectives include facilitating the delivery of Grade A office accommodation in the Dublin Docklands SDZ and facilitating the delivery of up to 20,000 new residential units to the end of 2020, subject to commercial viability. To meet these objectives, significant capital expenditure has been invested in assets with the expectation that they will generate an enhanced return for taxpayers.
I am advised that in order to achieve these objectives, NAMA has advanced €3.6 billion in funds to its debtors and receivers from inception to August 2017, comprising both current and capital expenditure. I am further advised that the majority of loans have been repaid either by the debtor or by the proceeds of loan sales. I am advised that, of new funding advanced since 2010, €0.6 billion (17%) is currently outstanding to NAMA and is being actively managed by the Agency, as it relates to debtors whose loans are still held by NAMA.
NAMA advise that, of the €3.6 billion advanced to NAMA debtors and receivers, €0.2 billion is unlikely to be repaid as it primarily relates to necessary expenditure to protect and maintain secured assets including Health and Safety works.
