Thursday, 25 October 2018

Ceisteanna (50)

Jonathan O'Brien


50. Deputy Jonathan O'Brien asked the Minister for Finance his plans to use the surplus generated from winding down NAMA to build housing. [44209/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

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 and since April 2018 it has commenced the redemption of its €1.6bn in subordinated debt. However, notwithstanding the successful achievement of repaying the State’s contingent liability, 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 NAMA projects a surplus in the region of €3.5bn to be returned to the State once it completes its work. The realisation of this surplus depends on the redemption of NAMA’s remaining subordinated debt by March 2020 and completion of its Dublin Docklands SDZ and residential funding programmes.

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, which is expected to be in 2020.

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. The intention has always been to use such receipts from the resolution of the financial sector crisis to pay down our national debt and reduce our debt servicing costs.

In the meantime NAMA is making a significant contribution to the supply of housing within the State where it is in a position to do so. NAMA’s residential funding programme is expected to fund the completion of 20,000 residential units by the end of 2020. NAMA is on track to meet this target with over 8,000 completed as of 16 October 2018. In addition, NAMA has an established policy of identifying to Local Authorities and approved housing bodies, properties within its portfolio which may be suitable for social housing. To date 6,984 such properties have been identified, with demand confirmed for 2,717 and 2,474 delivered or committed. Part of this delivery has been through NAMA’s innovative National Asset Residential Property Services (NARPS) model, which has purchased over 1,300 properties from NAMA debtors and leased them on for social housing.