Pearse Doherty (Donegal South West, Sinn Fein)
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Question 88: To ask the Minister for Finance if he will confirm the total number of loans held by the National Asset Management Agency that are performing; the average interest rate being paid on those loans that are performing; the average interest paid by those loans which are non-performing; and if he will make a statement on the matter. [8802/12]

Michael Noonan (Limerick City, Fine Gael)
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NAMA informs me that as at 30 September 2011, 2,872 of its loans were performing and 8,911 were non-performing. The weighted average contractual interest rate being paid in cash by those performing loans is estimated at 3.40% of the par / nominal debt at 30 September 2011. The non-performing loans at 30 September 2011, by definition, are not meeting their full contractual interest payments. However, it is estimated that €320 million in contractual interest has been paid to NAMA in respect of some of these loans since their acquisition, representing an estimated average annual interest rate of 0.38% on the non-performing loans.

Pearse Doherty (Donegal South West, Sinn Fein)
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Question 89: To ask the Minister for Finance the reason the sale of assets is included in the quarterly accounts of the National Asset Management Agency on the income side; his views that this practice gives a distorted account of the way NAMA is actually performing; and if he will make a statement on the matter. [8803/12]

Michael Noonan (Limerick City, Fine Gael)
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NAMA has advised me that it prepares its quarterly accounts in accordance with International Financial Reporting Standards. In accordance with these standards, sales of assets are included in the income statement (Profit & Loss). NAMA informs me that during Quarter 3 and Quarter 4 of 2011, it sold a number of loans to third parties. When a loan is sold to a third party, the gain or loss on the disposal of the loan is calculated as the sale proceeds minus the value of the loan NAMA had been carrying in its books. NAMA advises that accounting for gains or losses on disposals of assets in this manner is a normal accounting practice and will present a fair reflection of its performance in the period.

Pearse Doherty (Donegal South West, Sinn Fein)
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Question 90: To ask the Minister for Finance the reason foreign exchange gains are included in the quarterly accounts of the National Asset Management Agency; his views that this practice gives a distorted account of the way that NAMA is actually performing; and if he will make a statement on the matter. [8804/12]

Michael Noonan (Limerick City, Fine Gael)
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NAMA advises me that it prepares its quarterly accounts in accordance with International Financial Reporting Standards. In accordance with these standards, foreign exchange gains and losses are included in the income statement (Profit & Loss). The amount included in the income statement represents the gains or losses on the translation to euro of its foreign currency loan portfolio and related foreign exchange derivatives. NAMA has put in place hedging arrangements and uses foreign exchange swaps to manage its foreign exchange risks. The performance of foreign exchange markets may result in unrealised foreign exchange gains or losses being recognised in the income statement for a period, which may not be subsequently realised at a later date. The gain of €47 million in the Quarter 3 Report is an unrealised gain reflecting movements in foreign exchange swap rates in the quarter. NAMA informs me that its accounting treatment for foreign exchange gains or losses and the presentation of its financial performance in general is in accordance with other similar enterprises.

Pearse Doherty (Donegal South West, Sinn Fein)
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Question 91: To ask the Minister for Finance the reason no independent auditing firm is used in the preparation of the National Asset Management Agency's quarterly accounts. [8805/12]

Michael Noonan (Limerick City, Fine Gael)
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The NAMA quarterly accounts are prepared in accordance with section 55 of the National Asset Management Agency Act 2009. NAMA advises that it would not be considered normal practice for any State or commercial entity to have its quarterly accounts audited or prepared by an independent auditing firm. NAMA also advises me that, apart from imposing additional and unnecessary costs, involving an independent auditing firm in the preparation of the agency's quarterly accounts would delay their publication. The annual accounts of NAMA and each group entity are subject to an independent audit by the Comptroller and Auditor General in accordance with section 57 of the Act. It is expected that the NAMA 2011 annual accounts will be publicly available by the middle of the year.