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Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Pearse Doherty: Were you part of that?

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Pearse Doherty: Can I ask you question in relation to the statement? Were there a number of drafts of the statement? Or there would have been a discussion in relation to what should go in?

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Pearse Doherty: Are you aware, or was there a situation where a section of the statement was deleted that would have made claim in relation to the solvency of the banking system and of the individual banks?

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Pearse Doherty: You have no information-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Pearse Doherty: Okay, I appreciate that. And it is important just to try to patch together, you know, the events of the night. Can I just return in relation to NAMA. Mr. Daly, you mentioned that there was an explosion of credit and a huge amount of credit into the Irish economy. In relation to the €74 billion worth of loans that were transferred to NAMA, how much of them were in the Irish State?...

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Pearse Doherty: So, half of ... just over half of all the NAMA loans and Mr. McDonagh you talked about that this cost about €40 billion in terms of the recapitalisation of the banks. Just over half of it were actually in the Irish State?

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Pearse Doherty: Okay. In relation to the security that underpinned some of these loans, and you mentioned in Vol. 2, page 5, table 3 and again Vol. 1, page 4, table 2, where NAMA wrote down €477 million as a result of not being able to ... inadequate security, and then claimed back €334 million from the banks for the same purposes, which totals €811 million of unenforceable securities....

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Pearse Doherty: Okay. So in relation to the unenforceable security of loans, what was the par value of unenforceable security?

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Pearse Doherty: So we are talking about somewhere in the region of €1.7 billion-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Pearse Doherty: About €2 billion of loans that the institutions had that .... the money could not be collected or the assets could not be sold because the security-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Pearse Doherty: So did those people who took out the money just walk away because the security is not there? Is that what happens in a case like this?

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Pearse Doherty: Okay. Mr. Daly, you mentioned commercial property was basically NAMA is commercial property, the €74 billion, the majority of this is commercial property and you give a good breakdown in relation to where the institutions and the type of property that were held in Vol. 2, page 7. We have the consideration amount, the €32.4 billion that was paid and we can see very clearly...

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Pearse Doherty: You can give an estimation for land but in terms of ... are there no kind of guidelines in terms of hotels, investment property-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Pearse Doherty: Thank you.

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Pearse Doherty: Agreed, yes.

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Pearse Doherty: It's the water meters, Joe.

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Pearse Doherty: Go raibh maith agat, a Chathaoirligh. Mr. McDonagh, just, when we came back from the previous break you just clarified a response that you gave to myself and the question I was asking you earlier on was of the €811 million that was clawed back, or wasn't paid by NAMA, as a result of security issues, you mentioned that the loan book value of that was actually €3.5 billion, is...

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Pearse Doherty: But these banks which have transferred their loans to NAMA had issued loans of the value of €3.5 billion that cannot be called on because of securities, that can't be-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Pearse Doherty: No I understand you paid nothing to the banks but the Irish taxpayer paid for the banks, paid for-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Pearse Doherty: And is there any recourse in a situation like that there, where, because of documentation, you've outlined some of the issues that would arise in these circumstances, is there any recourse in relation to this €3.5 billion?

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