Pearse Doherty (Donegal, Sinn Fein)
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136. To ask the Minister for Finance the date NAMA will be wound up; and if he will make a statement on the matter. [2857/19]

Pearse Doherty (Donegal, Sinn Fein)
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137. To ask the Minister for Finance the plans which have been put in place for the wind-down of NAMA; and if he will make a statement on the matter. [2858/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 136 and 137 together.

I wish to advise the Deputy that it is expected that NAMA will substantially complete its work by 2020/2021. NAMA is on track to have repaid all its subordinated debt and to have reimbursed the private shareholders in the NAMA DAC by that time. NAMA will have also substantially completed its residential funding programme and its Dublin Docklands SDZ programme. Once these activities have been completed NAMA will be in a position to start transferring its expected €3.5bn surplus to the Exchequer.

As the expected wind down date for NAMA’s work approaches, there is a possibility that a small number of loans may not be resolved by 2021 due to ongoing litigation that is largely outside NAMA’s control. In addition, there is a possibility that NAMA may also be left with a small residual loan portfolio where best value for the State may not be achieved through sale or disposal before the end of 2021. Such assets are currently expected to represent less than 1% of NAMA’s original portfolio.

Active consideration is underway regarding NAMA’s end of life strategy and the maximisation of the return of any surplus to the State in respect of these remaining assets. These considerations will be examined in my forthcoming Section 227 review of NAMA. This review is required every 5 years under the NAMA Act to assess the extent to which NAMA has made progress towards achieving its overall objectives and to decide whether the continuation of the agency is necessary. The previous Section 227 review was published in 2014 and current review is due to be published later this year. I intend to use the publication of the next Section 227 review to make a decision as to how to best wind down NAMA in the context of the need to ensure that the State extracts maximum value from any residual assets remaining after 2020/2021.