NAMA review finds it has made 'exceptional progress', will manage loan book beyond 2021
A review by the Department of Finance has found that NAMA has made "exceptional progress" towards achieving its overall objectives.
Today, the Department published its second review of NAMA and covers the period 2014-2018.
According to the review, NAMA has repaid all of its €30.2 billion senior debt.
It expects to be in a position to return €4 billion of a surplus to the Exchequer subject to market conditions.
"Following the review I remain confident that NAMA remains fully on track to achieve its overall objectives and so continues to be necessary having regard to the purposes of the Act," said Minister for Finance, Paschal Donohoe.
Minister Donohoe added that he is finalising his plans in relation to the eventual wind-down and dissolution of NAMA.
A "short extension" to the timeframe originally planned is said to be required in order to allow NAMA to "work through a small quantum of residual loans in order to maximise the return of these assets to the State".
These loans, which represent less than 1% (approximately €300m) of those originally acquired by NAMA, are to be resolved during the period between 2021-2025.
The team working on these loans will be a reduced one which will also managed ongoing litigation.
Mr Donohoe announced that he is directing the Board of NAMA to retain ownership of the National Asset Residential Property Services (NARPS).
This decision was made "in recognition of the important role that NAMA's social housing vehicle makes to this sector".
It will form part of the assets to be transferred to the State once NAMA has completed its deleveraging activities.
This will preserve a secure long term portfolio of social housing into the future, according to Mr Donohoe.
“I am very happy to acknowledge the progress NAMA has made and would like to thank the board, management and staff of NAMA for their continued efforts in the interests of the Irish taxpayer," said Mr Donohoe.
Following the publication of today's review, NAMA Chairman, Frank Daly said: "I am pleased that the Minister’s review recognises what has been achieved by NAMA to date and that it takes a positive view of NAMA’s future prospects.
"The extension of NAMA’s remit to 2025 will enhance the return to the State by ensuring the orderly completion of NAMA’s work.”
NAMA said that the review "highlights the potential for NAMA to exceed current expectations".
It said that the residual loan portfolio that was secured by residential development sites in Ireland have significant medium-term value uplift potential.
NAMA Chief Executive, Mr Brendan McDonagh welcomed the "clear framework that will enable NAMA to plan its activities over the coming years in a manner that maximises the value of its remaining assets for the taxpayer."
