Friday 24 February 2017

Half of borrowers owing a combined €18.5bn have exited Nama - Noonan

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Michael Noonan
Michael Noonan

The Minister for Finance, Michael Noonan has confirmed that more than half of NAMA's debtors with debts of €18.5bn have exited the agency.

NAMA initially paid €31.8bn to acquire a €74bn loan book, comprising of 779 debtor connections.

In a series of written Dáil replies to Paul Murphy TD (Anti Austerity Alliance) on NAMA's operations, Mr Noonan said that at March 31 this year, "442 debtor connections with a par debt of €18.5bn had exited NAMA".

"This comprises debtor connections that reached a final agreement with NAMA and debtor connections whose loans were sold," he said. "Forty four debtor connections have repaid their par debt in full. I am further advised that the 442 debtor connections have repaid €9.6bn to the Agency.

"NAMA is on track to recover all of the €31.8bn it paid to the banks, including the €5.6bn in State aid and the €4.5bn of further value declines to the end of 2013.

"In addition, NAMA expects, based on current projections, to generate a surplus of up to €2bn by the time it completes its work after all its financial obligations have been repaid."

On NAMA's progress in building homes to assist the housing market, Mr Noonan said the agency is already making significant progress.

He said that since 2014, NAMA has funded the construction of 2,700 new residential units in Ireland on residential development land within its portfolio; a further 3,300 are under construction of which 2,700 are in the Dublin area and planning permission has been granted for an additional 4,800 units of which 4,200 are in the Dublin area.

He said that planning applications have been lodged for 4,300 units of which 3,500 are in the Dublin area and that new applications will be lodged within the next 12 months for 7,237 units of which 5,800 are in the Dublin area.

The minister said he hoped local authorities would be able to reduce barriers to further development by progressing the necessary infrastructure such as roads, water sewerage, transport and schools

Minister Noonan also stated that NAMA has also advanced over €250m in capital expenditure to facilitate the provision of office space to meet demand from both domestic and Foreign Direct Investment (FDI) employers.

Irish Independent

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