Brian Lenihan Jnr (Dublin West, Fianna Fail)

The Deputy seemed to suggest it was the great bulk of it. The key point in regard to the valuation of those assets is exactly as Deputy Burton stated, namely, that there has to be a very steep discount for such assets. In addition, in the case of land, the potential for any medium-term economic value has to be very carefully evaluated because in some cases there may be no medium-term economic value. I do not fundamentally disagree with the point of principle on which the Deputy asks, which is a matter the NTMA is factoring into its thinking in the evolution of a valuation methodology.

With regard to the number being 50 or 100 developers, the point I made was that the number of loans being directly managed at NAMA will not cover all of the loans as, otherwise, a huge administrative burden would be imposed on NAMA. Although that number has yet to be finalised, whether it is 50, 100 or 150, there will be a cut-off point in terms of the size of the loans being worked out directly by the new agency.

The Deputy raised another point.

See this speech in context