Brendan Kenneally (Waterford, Fianna Fail)
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Question 67: To ask the Minister for Finance the estimated cost to the Exchequer if a National Asset Management Agency type scheme were to be brought in for mortgage holders; and if he will make a statement on the matter. [28848/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I have informed this House on many occasions that NAMA is not a form of bailout for developers whose loans are in default. A borrower whose loan is transferred to NAMA will continue to owe the full amount borrowed and the conditions of the loan will generally remain the same. NAMA will manage these loans in the best interest of taxpayers and where necessary will seize property or other assets which are the security to a loan which is not being repaid. A NAMA type scheme for mortgage holders would operate on the same basis and would not be in the best interest of mortgage holders. I have not costed such an option.

The Government is aware of the difficulties being experienced by mortgage holders. As the Deputy is aware, last February I announced the establishment of an Expert Group on Mortgage Arrears and Personal Debt, under the Chairmanship of Mr. Hugh Cooney. The Group, which has initially explored the feasibility of a range of possible options for improving the level of mortgage support to homeowners in difficulty, will report to me with its initial recommendations very shortly.

I understand that the Group will then examine further options, including the costing of such options and report to me with its final report on mortgage issues in early autumn.