Jonathan O'Brien (Cork North Central, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Finance his views on the decision to provide a €1 billion credit facility from the National Assets Management Agency for the use of the special liquidator of IBRC; when the decision was made; the credit facility that is intended to be used for; the way €1 billion if used will be repaid to NAMA; if he had to seek permission to use NAMA for such a credit facility from another entity such as the ECB; if the funding of the credit facility comes from cash assets at NAMA and if NAMA can still meet its bond repayments due at the end of 2013. [10583/13]

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

I refer the Deputy to my responses to Parliamentary Questions 10644/13, 10646/13 and 10647/13, answered on 27th February 2012, on this topic. On the 7th February 2013 I issued a Direction (NAMA/3/12/IBRC Act) to NAMA pursuant to the IBRC Act 2013 to provide such credit facilities to a special liquidator (or IBRC) on such terms and conditions, as are specified in the direction. NAMA has complied with this Direction and made a €1 billion credit facility available to the IBRC. The interest rate as per the facility agreement is referenced to the daily one month euribor rate plus a margin of 140 basis points. The facility has been advanced to IBRC (in Liquidation) for both the general corporate purposes of the Company and to discharge the Company's obligations to derivatives counterparties under derivative collateral arrangements and/or obligations to the NTMA under the NTMA ISDA Master agreement. The amounts drawn under this facility shall constitute and rank as costs of the liquidation of the Company.

I am advised by NAMA that following receipt of the Direction, the Board of NAMA met on Thursday, 7th February 2013 and approved the €1 billion facility. NAMA has made this facility available to the Company in accordance with its approved liquidity policy and from its own liquid assets. The granting of this facility does not impact on NAMA’s ability to redeem bonds in accordance with the previously indicated redemption targets.