Pearse Doherty (Donegal South West, Sinn Fein)
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To ask the Minister for Finance following the publication on 25 July 2012 of the National Asset Management Agency report and accounts for the three months ending 31 March 2012, the reason legal fees booked during the quarter of €23,000 were so low compared with the annual budget for 2012 of €25 million; and if he will make a statement on the matter. [38505/12]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by NAMA that legal fees for the first quarter of 2012 are low relative to budget for a number of reasons. Some fees actually paid in the quarter related to legal work which was in progress at the end of 2011 and had been accrued in the Q4 2011 accounts. In addition, the budget of €25m for 2012 included prudent assumptions on potential litigation costs which have not to date emerged. In addition, some of the legal fees incurred by NAMA are regarded as recoverable from the debtor and do not form part of its administration expenses. NAMA's expectation is that the outturn for legal costs in 2012 will be significantly less than the €25 million budgeted.

Pearse Doherty (Donegal South West, Sinn Fein)
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To ask the Minister for Finance following the publication on 25 July 2012 of the National Asset Management Agency report and accounts for the three months ending 31 March 2012, the reason the portfolio management fees booked during the quarter of €355,000 were so low compared with the annual budget for 2012 for receivers of €33 million. [38506/12]

Michael Noonan (Limerick City, Fine Gael)
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Portfolio Management Fees relate to the ongoing costs of managing the acquired loan portfolio, including fees incurred for the review of debtor business plans together with other fees relating to its portfolio management such as fees for valuations, asset searches, insolvency advice and ancillary property costs. Portfolio Management fees do not include costs relating to receivers appointed to NAMA debtors. These costs are deducted from proceeds realised from the receivership and disposal of the related property assets and, therefore, do not form part of NAMA's administration expenses but will impact on the Income statement as gains or losses on realisations.

Pearse Doherty (Donegal South West, Sinn Fein)
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To ask the Minister for Finance following the publication on 25 July 2012 of the National Asset Management Agency report and accounts for the three months ending 31 March 2012, what the expense heading other administrative expenses which totals €317,000 for the quarter, relates to. [38507/12]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by NAMA that the expense category 'Other Administrative costs' comprises principally insurance premia, external project costs, bank fees and charges and sundry expenses.

Pearse Doherty (Donegal South West, Sinn Fein)
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To ask the Minister for Finance further to Parliamentary Question 213 of 12 June, 2012 and following the publication on 25 July 2012 of the National Asset Management Agency report and accounts for the three months ending 31 March 2012, the proportion of loans that are now performing by reference to the original loan agreement. [38508/12]

Michael Noonan (Limerick City, Fine Gael)
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I would like to direct the Deputy to page 9 of the NAMA Section 55 Report for the first quarter of 2012 which states that, as at 31 March 2012, 19% of the loans acquired by NAMA were classified as performing by reference to the nominal loan amount (i.e the original loan agreement). These include restructured loans. NAMA estimates that the loan restructures enhance the proportion of loans classified as performing loans by 2%. It should be noted that this classification of performance is primarily by reference to legacy loan facility obligations. It should be noted that the 19% cited above, translates to 29% by reference to acquired loan value.

NAMA advises that one of its key objectives is to manage its debtors and receivers so as to capture, for debt servicing purposes, income (principally rental income) from their property assets. Such income capture was not widespread prior to NAMA's acquisition of the loans and NAMA has launched a major drive to achieve this objective. NAMA measures its performance, in part, by the extent to which it captures such income on an on-going basis and not wholly on the extent to which a debtor is in compliance with the terms of legacy loan facility arrangements which predate NAMA loan acquisition.

Please also refer to Section 22.5 of the Annual Report for further information regarding the credit quality of loans and receivables.