Kieran O'Donnell (Limerick East, Fine Gael)
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Question 163: To ask the Minister for Finance the breakdown of the financial institutions to which the loans of €16 billion to be taken over by National Asset Management Agency in December 2009 and €24 billion to be taken over in January 2010 relate to, in both number of projects and value terms and the discounts being applied to each individual institution; and if he will make a statement on the matter. [37798/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Summary information provided in the draft NAMA business plan, and by me during the Second Stage debate on the NAMA Bill, is of a provisional nature.

The figures provided to date relate to the covered institutions who have indicated they intend to apply to participate in NAMA. The loan quality, geographic distribution and loan type will all vary from institution to institution.

Any further breakdown of the information will be contingent on the finalisation of the NAMA legislation, the designation of participating institutions and the designation of eligible assets among other issues. Importantly, information on the level of loans to transfer and the discount rates to be applied will only become available following a loan by loan assessment and the application of the valuation methodology.

Joe Costello (Dublin Central, Labour)
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Question 164: To ask the Minister for Finance the opportunity cost of proceeding with the National Asset Management Agency; and if he will make a statement on the matter. [37703/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The National Asset Management Agency (NAMA) is being established to address the systemic threat posed to the Irish financial system by certain portfolios of risky assets on the banks' balance sheets.

'Opportunity cost', in economic terms, refers to the opportunities forgone in the choice one expenditure over another. As the Deputy is no doubt fully aware, the monetary costs involved in NAMA must be judged against the risks and costs of not taking sufficient action to maintain the stability of the banking system, the security of savings and the availability of credit. I am sure the Deputy will agree that the costs of inaction could be catastrophic.