Seán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

I wish to refer to a few items in NAMA's quarterly accounts - the section 55 NAMA accounts presented to the Minister. Both Mr. Daly and Mr. McDonagh signed the statement on 21 September. The quarterly report on the accounts for the second quarter is for the period up to 30 June 2012. On that date the amount due to NAMA on debtor loans was €72.4 billion. The NAMA book value of the loan portfolio was €24.8 billion. Are the delegates familiar with this document? It shows that the loan book at the end of June - the most recent period for which figures are available - was valued at €24.8 billion against the par value of €72.4 billion. That indicates a write-down of 66% compared to a write-down of 57% on loans taken in over a period. I refer to the last paragraph on page 2 of the document which shows the performance of the portfolio based on acquisition value of 29%; it is 19% of the original par value. The final sentence reads: "It should be noted that as NAMA disposes of income generating assets, the performance of the loan portfolio may deteriorate". Are we witnessing that situation? I know the percentage has not changed this year on the performing loans. The delegates seem to be saying that if NAMA disposes of its good liquid assets up front, especially in the United Kingdom or the United States, it will be left with a rump and the performance of what remains may deteriorate. This is what NAMA stated to the Minister. This is shown in the figures because NAMA provided for a write-down of 57% on the current loan book and this figure has increased to 66%, based on NAMA's valuation of its accounts. Do not talk about unrealised possibilities because they can be accounted for when they occur. The accounts presented to the Minister show a write-down of 66% on what remains, which is worrying. I have a few questions about the accounts.