I wish to advise the Deputy that it is expected that NAMA will substantially complete its work by 2020. The Agency announced in October 2017 that it had redeemed all of its €30.2bn in Senior Debt which was guaranteed by the State. However, notwithstanding the successful achievement of this primary and important objective, three years ahead of schedule, there is still a significant body of work yet to be completed by NAMA.
Subject to current market conditions prevailing, this includes redemption of NAMA’s subordinated debt of €1.6 billion by March 2020 and completion of its Dublin Docklands SDZ and residential funding programmes. The most recent details on NAMA's remaining work are available in the Agency's Annual Statement 2018. This is available on the NAMA website via: https://www.nama.ie/about-us/publications/section-53-reports-and-accounts/.
The carrying value of NAMA's loan portfolio at 30 September 2017, net of impairment, was €3.7bn. Much of this portfolio is secured by low-value, granular assets and realisation of its full market value over the next three years will require patient and extensive work on the part of NAMA. It is through the successful completion of its deleveraging, Docklands and residential funding programmes that NAMA currently projects a surplus in the region of €3bn to be returned to the State once it completes it work. As per section 60(2) of the NAMA Act 2009, NAMA may use surplus funds to redeem and cancel its senior and subordinated debt. Surplus funds may only be returned to the Central Fund once NAMA's debt has been redeemed in full.
Any NAMA surplus paid, while Exchequer positive, will not impact the general government balance, in line with Eurostat rules. It will be a decision for the Government as to how any surplus returned by NAMA will be utilised within the framework of the fiscal rules.
NAMA was mandated in late 2009 to deal expeditiously with its acquired loan portfolio and to extract best value from that portfolio. NAMA has been extremely successful in achieving this mandate and has now entered into the final phase of this work which involves completing its remaining deleveraging activity and implementing its residential delivery programme and Dublin Docklands SDZ programme.
As such I do not intend to extend the current remit of NAMA beyond its expected completion in 2020 and in line with its original approval from the EU Commission I February 2010. However, I refer the Deputy to the announcement in my Budget statement in October 2017 of the establishment of Home Building Finance Ireland (HBFI), which is intended to increase the availability of debt funding on market terms to commercially viable residential development projects. It is my intention that HBFI will draw on the expertise and experience in residential development funding that currently resides in NAMA in order to efficiently deliver on its objectives.