Written answers

Wednesday, 23 May 2012

Department of Finance

National Asset Management Agency

10:00 pm

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Question 29: To ask the Minister for Finance the number of the National Asset Management Agency's valuations that have been appealed by the banks; the number of those appeals that were upheld; the value of the difference; and the banks that were involved. [25650/12]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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The Deputy will be aware that, under Section 122 of the NAMA Act, a participating institution may dispute the total portfolio acquisition value of all bank assets acquired from it by NAMA if it believes that the aggregate market value of the acquired portfolio exceeds the total portfolio acquisition value. It may do this after service of a completion notice by NAMA. I understand that the EU Commission is currently engaged in an audit of the valuation of the loans transferred in the final Tranches. NAMA proposes to serve a completion notice on each institution after the Commission has indicated its approval of the valuation of all loan transfers from that institution. The timing of completion of that audit is a matter for the Commission.

When NAMA issues completion notices to the institutions, it will then be a matter for the Boards of the institutions to determine whether they wish to formally dispute the total portfolio acquisition value as finally approved by the Commission. If they decide to do so, the valuation appeal process specified in Sections 119-127 of the Act is thereby activated.

All of the participating institutions have submitted appeals to individual loan valuations under Section 121 but this section does not require any adjudication on valuations. The significance of Section 121 appeals is that if, in aggregate, the disputed valuations total more than 12.5% of the total portfolio acquisition value, the PI thereby qualifies to make an appeal under Section 122. The position is that to date no participating institution has yet disputed the total portfolio acquisition value of the portfolio acquired by NAMA.

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