Joan Burton (Dublin West, Labour)
Link to this: Individually | In context

Question 139: To ask the Minister for Finance if the average discount to be paid on assets transferred to the National Asset Management Agency is expected to be less than the 30% initially envisaged; if there have been significant revelations in respect of satisfactory legal title and cross collateralisation of assets securing property, development and associated loan; and if he will make a statement on the matter. [5345/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

The estimates I provided in September in relation to the prospective NAMA portfolio were based on aggregate information provided by the relevant financial institutions. At all times I stressed that information on the actual price to be paid for loans would only become clear following a loan by loan assessment once NAMA was established.

Preparatory work on the transfer of assets is now under way and it is envisaged that the first tranche of assets will be valued and transferred to NAMA in February. This will provide clearer information on the level of discount to be applied to loans purchased by NAMA in relation to the first tranche of the expected NAMA portfolio.

Valuation itself is a matter for NAMA in accordance with the NAMA Act and regulations made under it. Where any defects exist in relation to the security for a loan, this will be reflected in the lower price paid by NAMA for it.