Paul Coghlan (Fine Gael)

On the qualifying eligible assets, there are some serious situations arising here and without naming it, I wish to come to one specific matter of which the Minister has been made personally aware. In the case of a company in the renewable energy field, probably employing in the region of 500 persons and which had, say, €100 million in security and maybe €50 million in loans, because of the definition NAMA has clarified that all of that has been taken in, even though they are performing loans. The company has a contract to complete by Friday, say, for another €11 million, which, on the existing security, the bank is more than willing to lend because the company is good for it, but because all of the existing security is being proposed to be transferred to NAMA, the bank now finds that it cannot advance the €11 million on the alternative security. This is a crazy situation where this company could be liquidated by court order for something that has been sanctioned because of a nonsensical rule within the NAMA proposal. The financial institution concerned is comfortable to lend.

This is pertinent to what we are dealing with on section 210, on the guidelines. I would plead that in all such cases NAMA not be allowed take an excess, especially where these are performing loans. This is not something that is non-performing. I refer to performing loans that NAMA is taking because they are related under the guidelines, under the definition section, as a qualifying eligible asset.

This is nonsensical. We must free this up for the sake of our economy and for the sake of companies. I refer to a specific company, with 500 persons employed in the south, which is facing completion of a contract on Friday for €11 million, where the bank had sanctioned it but NAMA is taking the existing security, which it does not need at all. One would understand it in the case of a non-performing loan. These are performing loans but, because of the definitions, this is all being taken in.

I will follow this up with the Minister, Deputy O'Dea, afterwards. I raise the matter here on this section because it is sensible that the Government amend this, in all our interests and in the interests of the economy, so that NAMA not be allowed take all of the existing security in the case of performing loans that are being transferred because of the definitions in the Bill.