Andrew Doyle (Wicklow, Fine Gael)
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Question 170: To ask the Minister for Finance the policy he will implement regarding the management of derivative financial instruments to be taken on by the National Asset Management Agency; and if he will make a statement on the matter. [45446/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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In relation to the €77 billion loan portfolio projected to transfer to NAMA, the NTMA have indicated that the estimated total notional value of financial derivatives attached is €15 billion. These derivatives are typically interest rate swaps or equivalent instruments designed to hedge interest rate payments and the notional value refers to the underlying assets to which the derivatives are related – the details are set out in Table 3, page 9 of the draft NAMA Business Plan published in October. These derivatives are an integral part of the loan portfolio and are not additional to this amount.

The management of these financial derivative instruments is an operational matter for NAMA. I understand however, that it is anticipated that in most cases the management of these derivatives will be undertaken by the originating financial institutions as an integral part of the loan management process which will be overseen by NAMA.