Dáil Éireann Debate, Thursday - 19 October 2017
69. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 111 of 3 October 2017, the average interest rate on the loans advanced by NAMA to developers; and if he will make a statement on the matter. [44446/17]
Amharc ar fhreagraI am advised by NAMA that its lending terms are in line with those available on the open market. The interest rates charged on loans advanced by the Agency typically comprise a margin over Euribor. Some facilities are by reference to the margin NAMA inherited from the participating institution. Typically however, the margin is determined by reference to the risk characteristics of each individual project, including the funding term, the equity contribution of the debtor and the loan-to-value. With due regard to the unique risk profile of each credit facility, I am advised that the margin charged on new development lending advanced by NAMA is generally of the order of 8%. I am advised that this margin is subject to regular review and may change in line with market conditions.
