Ruth Coppinger (Dublin West, Socialist Party) | Oireachtas source

The hope is that NAMA will make money but when NAMA refers to making a profit, it means that it hopes to recoup more than €31.8 billion from the NAMA bonds it gave the banks for the loans, as well as interest on the bonds and its running costs. However, this ignores the loss of €39.6 billion that the State incurred through the State owned banks because of the 57% haircut crystalised on loans as a result of the establishment of NAMA. When NAMA states that it is making a profit, it is disregarding the loss to the State of nearly €40 billion entailed in setting it up. It is hoped that money will be recouped through the sale of AIB but that is based on an underestimate on the true cost of bailing out AIB and Bank of Ireland. If AIB is privatised and sold off, it is likely that the State will not get much back because that is how these things usually go.

The figure the Government cites for AIB is usually €20.7 billion but the true figure is closer to €30 billion. Similarly, with Bank of Ireland, the Government usually cites €4.7 billion, but the true cost is over €7.6 billion. What is the Minister's view on that?

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