Written answers

Tuesday, 12 June 2012

Department of Finance

National Asset Management Agency

8:00 pm

Photo of Pearse DohertyPearse Doherty (Donegal South West, Sinn Fein)
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Question 213: To ask the Minister for Finance further to the publication by the National Asset Management Agency of its 2011 management accounts and its report for the fourth quarter of 2012, the proportion of performing loans held by NAMA by reference to loan nominal values excluding the effect of any restructuring of loans following acquisition by NAMA. [27943/12]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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The NAMA Report for the fourth quarter of 2011 confirms that of the loans transferred to end December 2011, 20% of the nominal debt was classified as performing and 80% was reported as non-performing. This is a disimprovement on the third quarter when 21% of the nominal debt was classified as performing and 79% was reported as non-performing. NAMA advises that performance can only be accurately measured based on the terms and conditions recorded on participating institutions' systems at the reporting date. The overall performance was reported as being 20% at end 2011. However, based on an analysis of the performance profile of these loans prior to the restructure event and comparing it to the performance profile at 31 December 2011, the Agency advises that the impact of debtor restructures on the performance of the portfolio to be a positive 1.6%. Accordingly, the proportion of performing loans held by NAMA by reference to loan nominal values excluding the effect of any loan restructuring is estimated to have been 18.4% at end-December 2011.

It should be noted that as NAMA divests itself of assets it is more likely to be selling performing assets and therefore each disposal will mean that the percentage of performing assets in the remainder will fall, even where no material change has occurred in that status of the remaining assets.

NAMA is continuing to address the issue of non-performing loans in the course of the Debtor Business Plan process. The outcome of NAMA's deliberations on the viability of a Debtor's business plan will determine whether these delinquent loans will be enforced or re-financed on new terms set by NAMA. It should also be noted that where Debtor Business Plans are agreed, the loans may be restructured and the performance profile of the overall loan book will change as performance is assessed against the restructured loans. The restructuring of loans will not reduce the amount owed to NAMA.

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