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

To ask the Minister for Finance further to Parliamentary Question No. 230 of 13 November 2012, if he will provide a breakdown of the legal fees paid by the National Asset Management Agency for 2012, and to date in 2013, including the amount each recipient received from NAMA [16534/13]

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

A breakdown of legal fees paid by NAMA in 2012 is set out below. I am advised by NAMA that information on the breakdown of legal fees in 2013 will be published on its website, www.nama.ie, alongside publication of its Section 55 Quarterly Reports and Accounts for each quarter during 2013. Legal fees paid by NAMA in 2012 amount to €3.28 million in relation to the management of its acquired portfolio of loans.

NAMA has paid further legal fees of €18.4 million which are recoverable as outlined below:

- €0.68 million in legal due diligence expenses in connection with the acquisition of residual loans being acquired from the Participating Institutions.

- €17.7 million in borrower recoverable costs (principally legal fees) which NAMA has incurred on behalf of NAMA borrowers. Such costs have been taken as an impairment charge as necessary in NAMA's financial statements.

The breakdown of the 2012 fees by recipient is provided below. The amounts paid include VAT.

1. 2012 Legal Costs

2. 2012 Legal Due Diligence Costs – Recoverable from Participation Institutions

Legal due diligence costs are costs that NAMA has incurred in connection with acquiring the portfolio of loans from the Participating Institutions. Legal due diligence costs are recovered from the Participating Institutions through a reduction in the acquisition value.

3. 2012 Borrower Recoverable Costs

Borrower recoverable costs are principally legal fees which NAMA has incurred on behalf of NAMA borrowers. Where the borrower is in a position to repay such costs NAMA will seek the repayment in cash. To the extent the borrower is not in a position to repay those costs, NAMA will add these costs to the borrower's debt obligations to NAMA. Such costs have been taken as an impairment charge as necessary in NAMA's financial statements.