Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

As the Deputy is aware, NAMA is obliged under section 10 of the NAMA Act to obtain the best achievable financial return to the State on the assets acquired by it. I am advised by NAMA that there has been no change in its strategy. For any particular asset or group of assets, NAMA assesses whether the best return to the taxpayer is achieved through the sale of the underlying property by a debtor or receiver or through the sale of the loan by NAMA itself.

As set out in response to recent parliamentary questions on the topic of NAMA loan sales - Questions Nos. 179 to 182, inclusive, of 16 October 2012; Question No. 167 of 16 January 2013; Questions Nos. 279 and 280 of 19 February 2013; and Question No. 216 of 23 April 2013 - NAMA has adopted a very thorough approach in line with accepted international market best practice for the sale of loan portfolios. NAMA operates a phased and orderly programme of disposal of both assets and loans to achieve the best possible outcome for the taxpayer. NAMA’s policy in regard to loan sales, as with the sale of properties by its debtors and receivers, is that other than in exceptional circumstances, loans should be openly marketed. To date, loan sales have been mainly triggered by third party approaches. After receiving such approaches, NAMA’s practice is to appoint loan sale brokers to market the loans and to deal with offers from the original bidder and from other interested parties.

As the Deputy is aware, the unaudited accounts for NAMA for the fourth quarter of 2012 were published last month and these accounts highlight the progress that NAMA has been making in delivering on its business plan. A detailed account of debtor strategies will be included in NAMA’s annual report and financial statements for 2012 which have been submitted to me and will be published in the coming weeks.

NAMA has maintained a strong cash position, generating over €10 billion in cash, it has repaid €4.75 billion in NAMA bonds and I am advised that it will meet its target to redeem €7.5 billion by the end of this year. In addition, NAMA is playing a key role in supporting employment in the property and construction industry and is continuing to work with a wide range of public bodies, including Government Departments, local authorities and State agencies.

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