Terence Flanagan (Dublin North East, Fine Gael)
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Question 80: To ask the Minister for Finance the discussions that he has had with the National Asset Management Agency regarding plans to launch their pilot scheme for negative equity protection; and if he will make a statement on the matter. [24448/12]

Michael Noonan (Limerick City, Fine Gael)
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NAMA launched its 80:20 Deferred Payment Initiative on 8 May 2012. This initiative is being made available initially on a pilot basis in respect of 115 houses located in residential developments in counties Dublin, Meath and Cork. Further details on the Initiative including eligible properties are available on NAMA's website, www.nama.ie. NAMA brought forward this scheme in response to my request that it examine measures open to it to help improve liquidity in the housing market in late 2011. Discussions with NAMA on their proposed scheme resulted in agreement that this initiative would go ahead subject to the following conditions:

* It is limited to 750 houses in total;

* Properties will be released in three tranches with an evaluation process after the release of the first tranche to determine the results of the scheme and the impact on the housing market;

* Properties in the pilot phase will be remaining vacant units in partly occupied housing estates;

* There would be limited numbers of houses released in each geographical area so as not to unduly impact on the local housing market; and

* NAMA would adopt other measures in combination with the sales process such as appropriate leasing initiatives and targeted sales (in rural areas) as well as the development of social housing solutions.

I am advised by NAMA that any extension of the pilot initiative to additional residential units would include units located across the range of regions in which NAMA's debtors control suitable units.