Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context

Question 41: To ask the Minister for Finance if the National Asset Management Agency has agreed deals with debtors which involve a reduction or dilution in any form of any personal guarantee the debtors may have given in respect of their loans now held by NAMA; if he will provide details of the number and nature of such deals; and if he will make a statement on the matter. [30197/12]

Pearse Doherty (Donegal South West, Sinn Fein)
Link to this: Individually | In context

Question 43: To ask the Minister for Finance further to Parliamentary Question No. 226 of 12 June 2012 wherein he stated that debt forgiveness has not formed part of agreements entered into by the National Asset Management Agency with debtors, if he will confirm if NAMA has entered into agreements in which personal financial commitments and obligations by debtors have been reduced or waived as part of any agreement. [30225/12]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

I propose to take Questions Nos. 41 and 43 together.

I am advised by NAMA that it did not pay any consideration to participating institutions for personal guarantees attached to acquired loans. This is because it did not consider that such guarantees had any residual value in the vast majority of cases as the amounts potentially recoverable were limited to the value of secured assets. The policy of the NAMA Board from the outset has been to pursue all personal guarantees to the greatest extent feasible where there is value to be obtained. I am advised by NAMA that, with respect to co-operative debtors who have made full disclosure of assets and liabilities, it may, on a case-by-case basis, consider the release of personal guarantees or personal recourse two years after the value of all assets have been realised. I am also advised that the NAMA Board has recently decided that it will review this issue again in the light of any revised personal insolvency regime that may be introduced following enactment of legislation by the Oireachtas.