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

I thank the Deputy for the question. I am advised that the NAMA chief executive, in his opening address to the Committee of Public Accounts in December 2014, stated that NAMA is aiming to redeem a cumulative 80% - that is €24 billion - of its senior debt by the end of 2016 and that it hopes it will have redeemed all of it by the end of 2018. He stated that those targets were predicated on conditions in the Irish market remaining favourable and on NAMA being in a position to retain sufficient specialist staff to enable it to generate the optimal financial return from the realisation of its residual loan portfolio.

I am also advised that the chief executive indicated at a meeting of the joint finance committee in October 2014 that NAMA projected a financial surplus of the order of €500 million over its lifetime. I understand that this estimate was based on financial projections as at end-June 2014 and that an updated projection is currently being prepared as part of NAMA's end-2014 impairment review.

The Deputy will be aware that, in the context of the section 227 review of NAMA carried out in 2014, I agreed to a set of strategic priorities with the NAMA board. In addition to its commitment to redeem a minimum of 80% of its senior debt by the end of 2016, the NAMA board also undertook to facilitate the timely and coherent delivery of key grade A office space, retail and residential space within the Dublin Docklands strategic development zone and Dublin's central business district and to maximise the delivery of residential housing units in areas of most need.

Given that these commitments were agreed with NAMA only in July 2014, it is too early to speculate as to what date in the future NAMA will have made sufficient progress on its objectives as to warrant consideration of its dissolution.

It should be noted that NAMA's progress in repaying its debt - it has already repaid more than 50% of its senior bonds - has been a very important contributory factor in the recent upgrades of Ireland's credit rating. Of particular importance has been the manner in which NAMA has not just consistently met but has exceeded its targets.

Additional information not given on the floor of the House

NAMA's primary objective is, as the Deputy is aware, to repay its senior debt, the €30.2 billion issued to the banks in 2010 and 2011 as consideration for its acquired loans, and to recover its carrying costs and advances to debtors. It is NAMA's view, based on the assumption that current market conditions will be sustained, that it will meet this primary objective and that it will also repay its subordinated debt.

The additional commitments agreed by the NAMA board in July 2014 did not involve any change to NAMA's mandate. I am not currently contemplating any additional role for it beyond that existing challenging mandate. Its role in relation to both the Dublin Docklands strategic development zone and residential development is entirely consistent with its mandate of achieving the best financial return for the State from the loans acquired by it and the active management of the underlying security. The provision of development funding to enhance the ultimate disposal value of assets securing its loans is a key part of its mandate. NAMA has to date advanced, on a commercial basis, more than €1 billion in development funding for Irish projects and has indicated that, if required, it could advance up to a further €3 billion to support delivery of commercial and residential accommodation.

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