Michael McGrath (Cork South Central, Fianna Fail)

I thank the Minister for his reply. I welcome the statement made by NAMA today, in so far as it goes, on the investment of €2 billion over the next four years. NAMA has access to up to €5 billion to invest in working capital and the completion of projects in its remit. The key test is whether the €2 billion it is to invest will add more than €2 billion in value to the assets in which it is investing. That can only be judged over time. On 27 March the Minister confirmed to me that NAMA had cash reserves on hand of €4.3 billion and it was earning a rate of 1.1%. As NAMA needs immediate access, it invests in liquid assets, which is just as well given that a few days later it was required to hand over €3.06 billion in respect of the bond that was issued instead of the promissory note.

NAMA has proposed providing up to €2 billion for vendor financing. Will that also come from its cash reserves? Potential buyers will essentially be lent money by NAMA to buy NAMA assets. Will that in any way reduce its ability to reach €5 billion in terms of investing in projects and working capital?

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