Brian Lenihan Jnr (Dublin West, Fianna Fail)

There are no legislative proposals relating to NAMA but the chairman of the agency recently explained that it has begun to engage directly with borrowers and, as the loans are acquired by NAMA, borrowers are being asked to produce business plans, which will set out detailed and credible targets for reducing their debt. The chairman and chief executive officer of the agency drew attention to the importance of realism in these plans in some recent comments on this matter. Where possible, NAMA will work constructively with borrowers to try to achieve the full value of the underlying property to ensure the best return for the taxpayer.

I am also advised that the agency has informed borrowers whose loans have transferred to it that it will be stringent in terms of any management costs allowed to them as part of their business plan. The legislation provides that the agency can borrow up to €5 billion in guaranteed borrowing for purposes other than the purchase of loans from institutions. This could include advances for the work out on properties transferred to NAMA. The quarterly reports will provide details of all advances made by the agency and each NAMA group entity. The first quarterly report is due to be submitted to me in the next week and I will arrange for copies to be laid before the Houses of the Oireachtas. The board has also committed to the production of an updated business plan, which it will submit to me by 30 June and which I expect to publish soon thereafter. The business plan is a matter for the board. However, I have been advised by the chief executive officer that the board, when reviewing the business plan, will take account of the data now available to it arising from the transfer of the first tranche of loans.

Deputy Kenny referred to the bank guarantee and legislation. There are no proposals to introduce legislation on this matter.

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