Bernard Durkan (Kildare North, Fine Gael)
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Question 158: To ask the Minister for Finance when he expects the National Asset Management Agency proposals will have a positive economic effect; and if he will make a statement on the matter. [11880/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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NAMA has already helped to generate greater confidence in the recovery of our economy. The spreads on Irish Government securities have narrowed in recent months on the back of the policies pursued by the Government in tackling the economic crisis. NAMA is one of these policy initiatives. I have been advised by NAMA that the transfer of the first tranche of loans will commence before the end of the month. Once the loans transfer the banks will be placed on a sounder footing and will be better placed to support economic recovery.

I have made it clear that I expect the banks which participate in NAMA to play their part in the economic recovery of the State by providing credit to viable businesses to protect and create jobs. The NAMA Act further provides that I may issue guidelines regarding lending to the participating institutions to ensure that they play their part in the economic recovery of the country. In this regard, I will shortly be issuing guidelines to ensure that SMEs, sole traders and farm enterprises will have recourse to an independent, external review of decisions of credit refusal by the NAMA participating banks.

Bernard Durkan (Kildare North, Fine Gael)
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Question 159: To ask the Minister for Finance the extent to which the various performance indicators have been monitored since the passing of the National Asset Management Agency legislation; the degree to which these are in line with predictions or otherwise; and if he will make a statement on the matter. [11881/10]

Bernard Durkan (Kildare North, Fine Gael)
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Question 161: To ask the Minister for Finance the extent to which the targets and predictions set out in the context of National Asset Management Agency legislation are so far being over or under achieved; the steps he proposes to take to bring the predictions back on track; and if he will make a statement on the matter. [11883/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 159 and 161 together.

It is not clear as to which targets and performance indicators the Deputy refers. The NAMA legislation provides for an annual statement to be produced by NAMA and for NAMA to submit quarterly reports, which I will make available to the Oireachtas. The first of these quarterly reports is in respect of the quarter ended 31 March 2010 and is due to be submitted to me on or before 30 June 2010.

The draft Business Plan, published by the interim NAMA in October 2009, sets out certain targets and projections for NAMA. The publication of a business plan is a matter for the Board of NAMA which was appointed in December 2009. I am aware that the Board proposes to review the Business Plan in the light of the extensive due diligence process currently under way and that any update to the Plan will be informed by information gleaned during that process and by the valuation of loans being transferred over the coming months. I am advised by NAMA that the NAMA Board proposes to publish a revised Business Plan by the 30th June 2010.

Bernard Durkan (Kildare North, Fine Gael)
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Question 160: To ask the Minister for Finance the extent to which the likely cost to the Exchequer of the National Asset Management Agency proposals needs to be adjusted; the cost of any such adjustment; and if he will make a statement on the matter. [11882/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I have stated that accurate figures on NAMA costs will be available only after NAMA has had an opportunity to assess the eligible loans, which will be independently valued. To date the five participating institutions have advised NAMA that approximately €80 billion of loans are 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. Moreover, section 84 of the NAMA Act provides that NAMA is not obliged to acquire any eligible asset on any grounds.

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.

Bernard Durkan (Kildare North, Fine Gael)
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Question 162: To ask the Minister for Finance the degree to which he has monitored the performance of the banking sector here in the aftermath of National Asset Management Agency; and if he will make a statement on the matter. [11884/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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My officials receive daily, weekly and monthly reports from the Financial Regulator, Central Bank and the NTMA and maintain a constant dialogue with same agencies and are kept aware of any developments. The Department also engages in direct contact with the covered institutions periodically when matters arise. Some of the key reports which my Department receives include:

Regular funding profiles and monthly private sector credit statistics from the Central Bank, the latter of which is publicly available.

Monthly summary financial returns from the Financial Regulator which look at inter alia, the capital position, liabilities covered under the CIFS Guarantee Scheme, impairments, provisions, new lending and the consolidated balance sheet. The Financial Regulator also provide weekly liquidity reports.

Weekly reports from the NTMA on the liabilities issued under the ELG Scheme.

As part of the recapitalisations of AIB and Bank of Ireland last year, both banks agreed to implement a credit package to improve the flow of credit to the real economy. Compliance with the commitments of the credit package is monitored by the Financial Regulator.