Thursday, 1 March 2012
Department of Finance
National Asset Management Agency
Question 72: To ask the Minister for Finance if it is still his view that the National Asset Management Agency will make a profit for the Irish Exchequer as per the view espoused by his predecessor upon the establishment of the agency; and if he will make a statement on the matter. [12073/12]
In July 2010 NAMA published its Business Plan which incorporated three different scenarios and their associated net present value (NPV) outcomes over its expected life time. These included a scenario where there was a recovery of long term economic value which suggested that there was a positive NPV of €1bn; a scenario of long term economic value plus 10 per cent suggesting a positive NPV of €3.9bn or a recovery of long term economic value minus 10 per cent equating to a loss of €0.8bn. The NAMA Board is currently reviewing its strategy in the light of developments in the Irish economy and in the property market since it published its Business Plan in July 2010. I am advised by NAMA that the key factors which the Board considers critical in terms of NAMA's ultimate profitability includes the performance of various economies in which its debtors' assets are located, the timing and sustainability of any recovery in the property market in Ireland, the sustainability of the UK property market, the availability of finance and the extent to which it can maximise the level of income produced by its loans and property assets securing them. I have asked the NAMA Board to keep me informed of its deliberations.