Pearse Doherty (Donegal, Sinn Fein)
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90. To ask the Minister for Finance the way in which the expected surplus to be transferred from NAMA to the Exchequer will be utilised in 2020; and if he will make a statement on the matter. [5020/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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As part of its Annual Report for 2018, NAMA revised its projected surplus to be returned to the State upward to €4 billion, subject to favourable market conditions. The realisation of the surplus depends on the success of NAMA’s ongoing deleveraging and the completion of its Dublin Docklands and Poolbeg SDZs and residential funding programmes.

Following a direction by the Minister for Finance in 2019, NARPS, NAMA’s social housing vehicle, will now be retained in long term State ownership. NAMA will transfer NARPS to the State at the direction of the Minister for Finance and this comprises €300 million of the projected €4 billion surplus. Of the remaining €3.7 million, this will begin to transfer to the Exchequer following repayment of NAMA’s outstanding equity obligations. It is expected that the first €2 billion of the surplus will be transferred to the exchequer in the coming months.

In addition to the €2 billion to be transferred in 2020, it is currently estimated that the residual surplus of €1.7bn will be paid to the Exchequer during 2021 and 2022. Forecasts for payments in 2021 and beyond are contingent on the projected surplus of €4 billion remaining unchanged and favourable market conditions that may determine the timing and disposal proceeds of residual assets. It is likely that COVID-19 will have some impact on the timing and amount of forecasted payments beyond 2020 however it is too early to estimate what the overall impact may be.

Any NAMA surplus paid, while Exchequer positive, will not impact the general government balance, in line with Eurostat rules. It will be a decision for the Government as to how any surplus returned by NAMA will be utilised within the framework of the fiscal rules at that time. The intention has always been to use such receipts from the resolution of the financial sector crisis to reduce our national debt and debt servicing costs.