Wednesday, 10 March 2010
Department of Finance
National Asset Management Agency
Question 63: To ask the Minister for Finance if he will comment on reports that the amount of loans to be transferred from Anglo Irish Bank to the National Asset Management Agency has increased from the €28 billion originally envisaged to at least €32 billion; if the estimates for loans to be transferred from the other institutions to NAMA have been revised upwards or downwards; if the total gross value and net value of loans to be transferred has been revised; if so, the amount, from the original estimates of €77 billion and €54 billion respectively; and if he will make a statement on the matter. [11655/10]
The figures I announced to the Dáil in September 2009 regarding NAMA were approximate figures based on estimates produced by certain guaranteed institutions. At all times I have stated that more accurate figures would be available only after participating institutions fully identified their eligible loans and these had been subjected to independent valuation.
Based on the assessment of applications from the five participating institutions, approximately €80 billion of loans have been identified as eligible for transfer to NAMA. The consideration to be paid for these loans will depend on valuations, determined by the application of the valuation methodology approved recently by the EU Commission, of each of the eligible loans. Also, section 84 of the NAMA Act provides that NAMA is not obliged to acquire any eligible asset on any grounds. It is my intention to provide a more detailed breakdown later this month. I should point out that Section 50 of the NAMA legislation places a limit of €54 billion on the consideration to be paid for the loans regardless of the nominal amounts involved. This limit can only be amended by a positive resolution by the Dáil. I have no intention of adjusting this figure at this time.
Section 73 of the NAMA Act sets out that NAMA may set a date by reference to which the market value of a bank asset or property is to be determined. NAMA have set this date as 30 November 2009. It follows that any property decreases or increases after 30 November 2009 will not be reflected in the NAMA market valuations. Valuation will be in accordance with recognised red book valuation standards, European valuation standards, or International valuation standards, as appropriate to the locations where the property is situated. The valuation process for the eligible bank assets will be certified by independent experts and validated by the Financial Regulator to ensure that the NAMA valuation methodology is robust and credible.