Pearse Doherty (Donegal South West, Sinn Fein)
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To ask the Minister for Finance further to a report in a national newspaper that 99.5% state-owned Permanent TSB is considering entering into a loan management contract with a private-sector company (details supplied) for the management of €2bn of commercial property development loans, the reason PTSB is not a National Asset Management Agency participating Institution, the reason these loans were not transferred to NAMA in 2010 and the reason these €2bn loans are not being transferred to NAMA now. [45973/12]

Pearse Doherty (Donegal South West, Sinn Fein)
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To ask the Minister for Finance further to a report in a national newspaper that 99.5% State-owned Permanent TSB is considering entering into a loan management contract with a private-sector company (details supplied) for the management of €2bn of commercial property development loans if he will provide an estimate of the fees that will be paid by PTSB to the company over the proposed life of the loan management contract. [45974/12]

Pearse Doherty (Donegal South West, Sinn Fein)
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To ask the Minister for Finance if he wil provide an assessment of the effect of the National Asset Management Agency acquiring €2bn of commercial property development loans from Permanent TSB, the management of which loans PTSB is reportedly contracting out to a company (details supplied). [45976/12]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 162, 163 and 165 together.

Permanent TSB confirms that a tendering process is underway in relation to third party servicing of its portfolio of commercial property loans and that the party referred to is among the parties that the bank has spoken to in this regard. The bank has not completed the tendering process, nor has it signed a contract with any party in this regard and even if such a contract is signed in the future the bank has confirmed that the fees would not be publically disclosed as they would be commercially sensitive.

As the Deputy will be aware Permanent TSB is not a participating institution under the NAMA Act 2009 as it did not make an application for such a designation. As a result none of its commercial property loans were acquired by NAMA in 2010. The Deputy will also be aware that only Land and Development loans in the participating institutions were acquired by NAMA from those institutions. The NAMA Act does not allow for a scenario where NAMA would service assets which have not been acquired by it. Permanent TSB is not currently selling its commercial property loan assets and therefore an analysis of the impact of an acquisition of Permanent TSB’s commercial property loans by NAMA would have limited value.