Tuesday, 29 September 2020

Ceisteanna (284)

Catherine Connolly

Ceist:

284. Deputy Catherine Connolly asked the Minister for Finance the series of commitments given by his Department in 2019 to the EU Commission in relation to the request to extend the lifespan of the National Asset Management Agency, NAMA, until 2025, in tabular form; and if he will make a statement on the matter. [26867/20]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

On 25th July 2019 the European Commission approved, under EU State aid rules, a limited extension of NAMA to 2025.

The extension was sought to allow NAMA to continue to work through a small quantum of residual loans in order to maximise the return from these assets to the State. These loans represent less than 1% of what NAMA originally acquired and will be resolved during the period 2021 – 2025 by a much reduced NAMA team which will also manage ongoing litigation appropriately. 

The commitments associated with the extension are contained in the decision published by the European Commission in July 2019 and is available through the following link (https://ec.europa.eu/competition/state_aid/cases1/201933/281016_2088986_136_2.pdf).

For ease, please find the commitments listed below in tabular form:

(a) 

There will be no alteration or expansion of NAMA’s mandate. NAMA commits to disposing its residual residential loans before the end of December 2025 and it is intended that NAMA will be dissolved by that date subject to outstanding litigation.

 (b)

The Irish authorities will not introduce any changes to the NAMA Act 2009 which requires NAMA to act commercially and deal expeditiously with the remaining assets while protecting or otherwise enhancing the value of those assets in the interests of the State.

 (c)

NAMA will not provide new development funding for its remaining assets for the period beyond end December 2021. Funding is envisaged to continue to be provided for asset management work (including infrastructural works designed to enhance site values) and to fund the process of securing appropriate planning approvals for sites securing the residual residential loans. Such funding will continue to be provided on a commercial basis and terms will be market conform.

 (d)

NAMA will continue to act as a Market Economy Operator with regard to the management and disposal of its post-2021 residual portfolio.

 (e)

The Irish Authorities will continue to submit yearly reports on the use of certain powers under the NAMA Act 2009 to the EU Commission and the Competition and Consumer Protection Commission, as provided for in paragraph 74(vii) of the 2010 Decision.

 (f)

Every year from 2021 until NAMA’s dissolution, the Irish Authorities will submit an annual report to the EU Commission providing an update on the progress that NAMA has made towards deleveraging its residual portfolio.  

 (g)

NAMA and the Irish Authorities agree not to issue any additional State guaranteed NAMA bonds.