Wednesday, 10 March 2010
Department of Finance
National Asset Management Agency
Question 61: To ask the Minister for Finance if the average discount to be paid on assets transferred to the National Asset Management Agency is likely to be more 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 loans; and if he will make a statement on the matter. [11652/10]
The estimated aggregate discount of 30% that I announced last September was never a prediction or a target rather it was a top-down aggregate estimate of the potential discount that the institutions will face. I always made it clear that the actual valuation will be determined on a loan by loan basis. Only after a significant number of loan-by-loan valuations have been carried out will it be possible to get a full sense of the overall discount. I am advised by NAMA that issues have arisen during the due diligence process regarding the quality of legal title and related matters. Clearly this justifies the thorough and detailed due diligence process undertaken by NAMA.