Kathleen Lynch (Cork North Central, Labour)
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Question 58: To ask the Minister for Finance the total nominal amount of loans transferred to the National Asset Management Agency to date; the total amount of senior and subordinated NAMA bonds issued to date; the aggregate proportion of NAMA bonds issued accounted for by the application of long-term economic value to loan transfers; and if he will make a statement on the matter. [25609/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 19 and 58 together.

The transfer of the first tranche of loans, totalling €15.3 billion in loan balances, from the five participating institutions concluded on 31 May 2010. NAMA issued bonds to a value of €7.7 billion to the institutions, of which 95% was senior debt and 5% was in the form of subordinated securities.

The Chairman of NAMA recently stated that a weighted-average LEV (long-term economic value) uplift of 11% was applied to the current market value of property underlying loans which were acquired as part of the first tranche. The first tranche weighted average uplift for loans was about 28%. The differential between the CMV and the LEV for loans is greater than that for property because the value for loans is dependent not just on the value of the property but also on the cash flows on the loans and the discount rate applicable to those cash flows and many of these loans have little or no cash flow.

Section 55 of the NAMA Act 2009 provides that NAMA will submit reports to the Minister for Finance every three months and that these will then be laid before each House of the Oireachtas. These reports are to include information on NAMA borrowings and bond issues.