Michael McGrath (Cork South Central, Fianna Fail)
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122. To ask the Minister for Finance his views on the continuing fall in the proportion of the National Asset Management Agency loans that are performing; and if he will make a statement on the matter. [36342/13]

Michael Noonan (Limerick City, Fine Gael)
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One of NAMA’s key objectives is to manage its assets so as to optimise, and capture for debt servicing, their income producing potential, for example, rental income. The capturing of such non-disposal income was not a common feature prior to NAMA’s acquisition of the loans and NAMA has undertaken significant steps to design and implement new structures so as to achieve this objective. NAMA measures its performance on the extent to which it captures such non-disposal 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 predated NAMA. Despite NAMA selling over €8 billion of assets to date it has maintained its weighted average cash flow loan performance at a stable level each quarter at over 30%. The Deputy may wish to refer to the NAMA Quarterly (Section 55) Report and Accounts for Quarter 1 2013, which were laid before the Houses of the Oireachtas yesterday and which contain further detail on the performance of loans. The Section 55 Report and Accounts show a weighted average cash flow loan performance of 32%. The Section 55 Report and Accounts show also that NAMA had generated cash receipts of €11.2bn since inception to end-March 2013, of which €7.2bn related to disposal activity and €4bn to non-disposal and other income, mainly rental income. These results are the most important measure of NAMA’s performance and show the significant progress that it has made in its just over three years in existence.