Michael Noonan (Limerick City, Fine Gael)
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I am informed by NAMA that the transfer of assets to it from the participating institutions is now close to completion and that loans with nominal balances of €74 billion have transferred to the Agency and that €32 billion has been paid by NAMA in respect of these loans. The provisions under which the National Asset Management Agency acquired loans are set out in the National Asset Management Agency Act, 2009. The acquisition process is governed by the provisions of Parts 4 to 7 of the Act in particular,

· Part 4 provides for the designation of credit institutions as NAMA participants and the designation of bank assets as eligible for transfer;

· Part 5 sets out the principles and policies for the valuation methodology;

· Part 6 sets out the procedures under which the assets are transferred to NAMA;

· Part 7 provides for the appeals processes of which participating institutions may avail

NAMA also provides a description of the loan acquisition process on its website at http://www.nama.ie/about-our-work/step-by-step/buying-a-loan/

Michael Noonan (Limerick City, Fine Gael)
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I assume the Deputy is referring to valuations of property which are an integral part of the due diligence process by which NAMA values loans being acquired from the participating institutions. I am informed by NAMA that the initial property valuation is commissioned and paid for by the institution. NAMA reviews this valuation and only in cases where it considers that the valuation is incorrect does it commission a 'second opinion' valuation from another valuer. I am informed that valuations are referred for second opinion only in about one case out of every six valuations and that, in such cases, NAMA accepts the second valuation as binding.

I would also point out that the loan valuation methodology was approved by the European Commission on 26 February 2010.