Pearse Doherty
Ceist:20. Deputy Pearse Doherty asked the Minister for Finance his plans for the expected surplus of NAMA; and if he will make a statement on the matter. [9845/19]
Amharc ar fhreagraThursday, 28 February 2019
Ceisteanna (20)
Freagraí scríofa
I wish to advise the Deputy that 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 must first use surplus funds to redeem and cancel its senior and subordinated debt. 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. 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. Following this NAMA will be in a position to start transferring its expected €3.5bn surplus to the Exchequer.
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 at that time. 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.