Michael McGrath (Cork South Central, Fianna Fail)
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92. To ask the Minister for Finance the status of the planned wind up of NAMA; the details of the portfolio that is remaining; the current estimate of the timeframe and the financial outturn from the wind up of NAMA; and if he will make a statement on the matter. [53751/17]

Michael McGrath (Cork South Central, Fianna Fail)
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126. To ask the Minister for Finance the status of the planned wind up of NAMA; the details of the portfolio that is remaining; the estimated timeframe; the estimated financial outturn from the wind up of NAMA; and if he will make a statement on the matter. [53791/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 92 and 126 together.

I wish to advise the Deputy that there has been no change to NAMA’s expectation that it will complete its work by 2020. The Agency announced in October that it had redeemed all of its €30.2bn in Senior Debt which was guaranteed by the State. However, notwithstanding the successful achievement of this primary and important objective, three years ahead of schedule, there is still a significant body of work yet to be completed by NAMA. Subject to current market conditions prevailing, this includes redemption of NAMA’s subordinated debt of €1.6 billion by March 2020 and completion of its Dublin Docklands SDZ and residential funding programmes. Successful completion of these major NAMA objectives will produce a significant economic and social contribution to the State, by addressing supply shortages.

I would also refer the Deputy to the announcement in my Budget statement in October of the establishment of Home Building Finance Ireland (HBFI), which is intended to increase the availability of debt funding on market terms to commercially viable residential development projects. In order to enable HBFI to get up and running quickly, it is my intention that it will draw on the expertise and experience in residential development funding that resides in NAMA.  

The Deputy will be aware of NAMA’s expectation that, once its work is completed in 2020, it will return to the Exchequer a terminal surplus, currently estimated at €3 billion, subject to current market conditions prevailing. I am advised that NAMA’s residual loan portfolio will require intensive case management and asset management if the projected terminal surplus is to be realised and as such, I do not envisage setting a shorter timeframe which could adversely affect the amount of the surplus ultimately realised, which is very important for the State. 

In relation to the NAMA portfolio, I would advise the Deputy that the latest information on the Agency’s remaining loan portfolio is available in the Agency’s Section 55 quarterly accounts for Quarter 2 of 2017 which is available on the NAMA website. As outlined in these accounts, the carrying value of NAMA’s loan portfolio at 30 June 2017, net of cumulative impairment, was €3.7 billion. It is expected that updated information will be available after I receive NAMA’s Section 55 report and accounts for Q3 in the coming weeks. I expect to lay that report before the Oireachtas as soon as possible thereafter.