Brian Lenihan Jnr (Dublin West, Fianna Fail)

As the Deputy will be aware, the initial preparations for the establishment and operation of NAMA are being managed by a steering group. The group is tasked with overseeing the preparation of the legislation in parallel with the practical preparations for the establishment of NAMA and is made up of representatives of the Department of Finance, the Attorney General's Office and the National Treasury Management Agency, NTMA.

The valuation of loans is, of course, crucial for NAMA. Loans will be transferred to NAMA at an appropriate write down which will ensure value for money for the taxpayer and take into account the risk being transferred to the State on the basis of the European Commission guidelines. The valuation methodology will be based on a number of factors, primarily current market value and the underlying longer-term economic value of the assets.

The NTMA has engaged HSBC to assist in the development of an appropriate valuation methodology which will ensure the independence of the valuation process. The valuation methodology require to be agreed with the European Commission.

See this speech in context