Michael McGrath (Cork South Central, Fianna Fail)
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Question 59: To ask the Minister for Finance if he is concerned by the continuing fall in the proportion of National Asset Management Agency's loans that are performing; and if he will make a statement on the matter. [30050/12]

Michael Noonan (Limerick City, Fine Gael)
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As the deputy is aware NAMA acquired a distressed loan portfolio from 5 participating institutions. 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. However, NAMA advises that it expects the situation to stabilise once NAMA's engagement with debtors moves into the implementation phase and as it invests in assets.

As previously advised to the House, 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. It should 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.