Brian Lenihan Jnr (Dublin West, Fianna Fail)

In accordance with the NAMA legislation, 95% of the total acquisition value of the acquired portfolio of each participating institution will be in the form of Government guaranteed bonds and 5% will be in the form of subordinated bonds. The interest rate on the Government guaranteed bonds is the six-month EURIBOR, as reset on 1 March and 1 September of each year. The value of the total bond securities issued to date by NAMA is €3.538 billion of which €3.361 billion, or 95%, is Government guaranteed bonds and €177 million, or 5%, is subordinated bonds. That information is available on the NAMA website. On the basis of the assessment of applications from the five participating institutions, loans worth approximately €80 billion have been identified as eligible for transfer to NAMA. The consideration to be paid for these loans will depend on valuations, determined by the application of the valuation methodology approved by the EU Commission, of each of the eligible loans. Furthermore, section 50 of the NAMA legislation places a limit of €54 billion on the consideration to be paid for the loans regardless of the nominal amounts involved. This limit can be amended only by a positive resolution by the Dáil. I have no intention of adjusting this figure at this time.

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