Written answers

Wednesday, 5 November 2014

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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35. To ask the Minister for Finance his views on whether the National Asset Management Agency is maximising its economic value for the taxpayer through its current sales strategy; and if he will make a statement on the matter. [41759/14]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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Earlier this year, NAMA announced that, in line with its obligations under Section 10 of the NAMA Act, it considered that the best financial outcome for the State would be achieved through a managed process of accelerating disposals in an orderly way with the target of redeeming 80% of senior debt (a cumulative €24 billion) by end-2016.  

Following on from the Section 227 review of NAMA which was conducted by my Department, I fully endorsed the view of the NAMA Board that it should take advantage, to the greatest extent possible, of favourable Irish market conditions by increasing the flow of assets to the market.  NAMA's policy is that the sale of all loans and the sale of properties by debtors and receivers should be openly marketed to ensure that the best price available in the market is achieved in all instances.

In addition to ensuring that NAMA obtains the best achievable return for the State on its acquired bank assets, such deleveraging creates wider collateral benefits for Ireland.  NAMA senior debt represents a contingent liability on taxpayers and its redemption yields benefits in terms of the creditworthiness of the sovereign. This was clearly demonstrated some months ago when the credit rating agencies stated that their upgraded ratings for Ireland reflected, in part, the positive impact they considered that NAMA's actual and planned accelerated disposal programme would have on Ireland's creditworthiness.

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