Ciarán Lynch (Cork South Central, Labour)
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Question 52: To ask the Minister for Finance his views on whether the imposition of a smaller mark down on assets transferred to the National Asset Management Agency in order to avoid having to inject capital into the banking system once the asset transfer has been completed to ensure the banks meet the regulatory capital requirements is appropriate; and if he will make a statement on the matter. [27962/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Loans will be transferred to NAMA at an appropriate written down value which will ensure value for money for the taxpayer and take into account the risk being transferred to the State.

The NTMA has engaged experts to assist the interim Managing Director of NAMA in the development of an appropriate valuation methodology, which will be fair and independent. The valuation methodology will have to be agreed with the European Commission, which published guidance on the treatment of impaired assets last February. The Commission has indicated that in the absence of a market value, a transfer value reflecting the underlying longer-term economic value of the assets would be an acceptable benchmark as a basis of valuation methodology.

I have previously indicated that, following completion of the transfer of assets to NAMA, the capital position of the institutions involved would be reviewed on a case by case basis.