Questions and Answers
On this page you will find answers to frequently asked questions about the Agency and its work. Click once on a question to view the answer (and once more to close it). Links throughout the answers will guide you to further information on the website.
Questions about the 80-20 Deferred Payment Scheme
Which mortgage providers are participating in the 80/20 Deferred Payment Initiative?
Bank of Ireland, AIB through its mortgage subsidiary, EBS and Permanent TSB are participating in the pilot initiative. Other mortgage providers may be included in the future. NAMA does not provide mortgage finance under this initiative.
Does the 80/20 Deferred Payment Initiative apply to any mortgage?
The initiative relates only to mortgages provided by participating mortgage providers (i.e. Bank of Ireland, AIB through its EBS Branch network and Permanent TSB) and secured by properties partaking in the scheme. The list of participating mortgage providers and participating properties may be extended in the future.
How much mortgage is drawn down on completion of the acquisition of the property?
The mortgage will be drawn in two instalments. The first instalment, which together with the buyer’s deposit will equate to 80% of the purchase price, will be drawn on the purchase date. The second instalment, equating to 20% of the purchase price, will be paid by the mortgage provider, on behalf of the home buyer, to NAMA five years after the first instalment. The payment of this second instalment to NAMA will be subject to a final valuation of the property value.
How will a borrower’s monthly mortgage repayment amount be calculated after initial drawdown?
In the majority of cases, for the first five years, the monthly mortgage payment will be calculated as follows: the paydown of principal will be on the basis of the full 90% mortgage (the combined first and second instalments) but interest is charged only on 70% of the principal, that is, the amount drawn.
In this context, the monthly payment amount will be similar to a standard mortgage but will repay the mortgage at a faster rate than a standard mortgage as interest will not be charged on the amount of the second instalment unless it has been drawn in the fifth year.
Where monthly payments are calculated on the basis that the total mortgage amount is drawn at the outset, the borrower benefits from an overall reduction in the cost of the mortgage, thus increasing the long term benefit of the Initiative. This will also assist in avoiding a considerable increase in loan repayments if the deferred amount becomes payable (leaving aside the impact of interest rates over time).
How will a borrower’s monthly mortgage repayment amount be calculated after the final valuation?
Where the borrower’s repayments have been made on the full mortgage approved, that is, on both the first and second instalment, and the final valuation results in reduction or cancellation of the deferred portion of the mortgage, the monthly repayment amount may be reviewed and adjusted downwards at the discretion of the mortgage provider.
Where the borrower’s repayments have been made on the full mortgage approved, that is on both the first and second instalment, and the final valuation results in the deferred payment being made in full, the monthly payment amount will continue at the same level until the loan is repaid, subject to interest rate movements.
It should also be noted that where the borrower’s repayments have been made on the first instalment only (only where expressly permitted by the lender) and the final valuation results in the deferred payment being made, the monthly payment amount is liable to increase.
Buyers and Properties
How does an individual apply for the 80/20 Deferred Payment Initiative?
An individual will go through the normal process of negotiating a purchase price for a participating property with the vendor and applying for a mortgage with a participating mortgage provider. To avail of the Initiative, an individual must complete and attach a Participation Form, located at the reverse of the 80/20 Deferred Payment Initiative Brochure to the standard mortgage loan application.
Which properties are included in the 80/20 Deferred Payment Initiative?
A list of participating housing developments, containing properties that have been selected for participation in the initiative, is provided here NAMA Deferred Payment Initiative Eligible Properties Listing (316.7 KB, pdf format).
For further information on the specific properties available please contact the appointed sales agent at the details provided.
How were the properties to be included in the 80/20 Deferred Payment Initiative selected?
Properties are primarily included on the basis of location and type relative to current market demand. The properties included are limited to those being sold by NAMA borrowers. NAMA does not own the properties.
How many properties are included?
Up to 750 properties will be introduced into the initiative on a phased basis.
Were all residential property developers provided with the opportunity to participate in the 80/20 Deferred Payment Initiative?
Only NAMA borrowers are eligible for participation. Following the identification of suitable properties, NAMA engaged the relevant developers and agreed the process for participation in the initiative and for marketing the properties.
Who is eligible to avail of the 80/20 Deferred Payment Initiative?
The initiative is available to owner-occupiers, including first-time buyers and existing home owners, subject to purchasing an eligible participating property as their principal primary residence and obtaining mortgage finance from an eligible participating mortgage provider.
How is the initial valuation agreed?
The initial valuation is the price agreed between the buyer and vendor for the purchase/sale of the property. However, as part of the credit underwriting process, a valuation of the property will also be undertaken by an independent valuer selected from the panel of independent valuers maintained by the participating lender.
How is the final valuation determined?
At the end of the five year protection period i.e. five years from the completion date of the transaction (or earlier in certain defined circumstances), a valuation of the property will be undertaken by an independent valuer selected by the property owner from a panel of independent valuers maintained by NAMA. Following the final valuation, if any or all of the deferred amount is payable, the mortgage provider will pay the second instalment directly to NAMA on behalf of the buyer.
What happens in the event of a dispute on the valuation?
In the event of any dispute on the valuation by either NAMA or the buyer, each must notify the other of such dispute within 5 days of receipt of the initial valuation. A further valuation will then be made by another valuer from the panel of independent valuers, as agreed between NAMA and the buyer (or failing agreement, by NAMA) within a further 5 day period. That valuation will be final and binding on all parties and if any or all of the deferred consideration is payable following on from that valuation, NAMA will then require the mortgage provider to make the further drawdown under the purchaser’s loan and to pay it directly to NAMA.
Who will pay for the final valuation?
The cost of the final valuation will be paid by NAMA and the valuation will be addressed to the buyer, the participating mortgage provider and to NAMA.
In the event of a dispute over the final valuation, the cost of obtaining a second opinion will be borne by the disputing party.
What if there have been changes made to the property between the initial and subsequent valuations?
The final valuation will be undertaken on a like-for-like basis against the valuation undertaken initially as part of the lender’s credit underwriting process. This assessment will include provisions to disregard any improvements (such as an attic conversion or an extension to the property) and/or any detrimental action undertaken by the buyer (such as deliberate damage).
What if the value of the property at the final valuation date is greater than the value of the property at the completion date of the transaction?
The completion date of the transaction is the date at which the sale and purchase of the subject property completed. If the value of the property on the final valuation date is greater than or equal to the value of the property at the completion date of the transaction, the mortgage provider will automatically advance the remaining 20% and pay it directly to NAMA on behalf of the buyer.
What if the value of the property at the final valuation date is less than the value of the property at the completion date of the transaction?
If the value of the property on the final valuation date has fallen below the value of the property at the completion date, the deferred amount (i.e. 20%) will be reduced or cancelled depending on the level of reduction e.g. a 15% fall in value would reduce the deferred amount payable to 5%. Should the reduction in value be 20% or greater, the deferred amount is no longer become payable to NAMA and the buyer will have no liability for the payment of this amount to the lender.
What happens in the event of divorce or separation prior to the fifth anniversary of the completion date?
A separation or divorce will not necessarily require any change. If the separation or divorce results in the sale of the property between buyer(s), the mortgage loan may continue on the same terms and conditions subject to the agreement of the mortgage provider and NAMA.
How will stamp duty be treated in respect of transactions under the 80/20 Deferred Payment Initiative?
Stamp duty liability will arise on the basis of the entire consideration provided for in the contract for sale (i.e. 100%). There is no provision in the Stamp Duty code for repayment of part of the duty in the event that any part of the deferred amount is reduced or cancelled.
What happens if the buyer dies prior to the fifth anniversary of the completion date?
If the buyer dies, a final valuation will be undertaken. The final valuation will determine if the deferred payment can be reduced or cancelled and, thereby, the total mortgage amount outstanding from the estate of the deceased.
What happens if the buyer becomes bankrupt prior to the fifth anniversary of the completion date?
If the buyer becomes bankrupt, a final valuation will be undertaken. The final valuation will determine the total mortgage amount outstanding from the estate of the bankrupt buyer.
Can the subject property be sold prior to the fifth anniversary of the completion date?
The original buyer may sell the property during the protection period but will be liable for the full amount of the deferred payment, unless prior written consent to the sale has been obtained from NAMA. NAMA will not unreasonably withhold its consent to a sale but will seek to ensure that any such sale is undertaken on an open-market basis to an unrelated party. Such consent will be subject to a final valuation of the property, based on which the deferred payment liability will be determined.
Questions about the Properties Enforced Listing
Why is a property listed as “for sale” on the NAMA website, but listed as “sold” on the Sales Agent website?
The information displayed on the NAMA website is provided by the insolvency practitioner at the end of each month. The data provided by the insolvency practitioner is for the previous month e.g. at the end of July the insolvency practitioner provides data for June. In a small number of cases, the property may be sold in between. The insolvency practitioner will update the information provided to NAMA in the next reporting period.
Where do I find the Enforced Properties Listing on the NAMA website?
You can find the Enforced Properties Listing by clicking on the Properties Enforced page of this website.
I am interested in buying property on NAMA’s books. How can I do so?
NAMA was set up to acquire loans from certain financial institutions and it does not own property as such. In most cases, the property securing these loans is under the control of the debtor and will remain so as long as the debtor continues to meet his obligations. If, therefore, you have a specific property in mind that you wish to purchase, it is best to approach the debtor directly. Debtors, as part of their business plan agreements with NAMA, will have agreed to the sale of some or all of their property and these will be offered for sale through normal sales channels.
In the case of certain debtors, NAMA has had to take enforcement action and the property securing the loans is now under the control of receivers or other insolvency agents appointed by NAMA.
My company can assist NAMA manage or sell the assets that are listed on the Enforced Properties Listing. How can I outline to NAMA the range of services that my company can offer?
As NAMA is a public body, strict guidelines are in place regarding the procurement of services. In many cases, NAMA will already have panels of providers in place to provide specific property services. All such panels are formed through an open public procurement process which is advertised at http://www.etenders.gov.ie/. You can at any time however liaise with the appointed insolvency practitioner should you wish to provide services to them with respect to management or sale of assets over which they stand appointed.
Can I rent an asset that is listed on the Register?
Where you have an interest in renting, rather than buying, the property that is listed, please email the sales agent (where appointed) to determine whether the property listed is available to rent. Where the sales agent is not appointed, please email the insolvency practitioner who will advise you accordingly.
I want to know the identity of the original owner of the property. Will the sales agent, receiver or NAMA provide me with this information?
No. NAMA, the sales agent or the insolvency practitioner will not be able to provide you with details of the original owner of the property. Only information regarding the specific properties that have been the subject of an enforcement action by NAMA, and the strategy for those properties (where this is developed at the time), can be provided.
I want to find out if a particular property is held as security by NAMA for loans to particular borrowers. The property is not listed on the Enforced Properties Listing. Can NAMA provide me with confirmation?
No. NAMA cannot divulge details of property that it may hold as security. NAMA can only provide details of properties where an enforcement action has been taken by NAMA on that property. All properties where an enforcement action has been taken in Ireland, Northern Ireland and Great Britain will be listed on the Enforced Properties Listing. In all other cases, NAMA will neither confirm nor deny that it has security over a property but will pass your interest onto the debtor but will not unduly interfere or act as an intermediary except in certain circumstances.
Can a property be sold to me without the property having first been advertised for sale via a sales agent?
As a state agency, NAMA’s policy is for properties to be sold on an open market, competitive basis in a manner that is in accordance with prevailing market norms for the asset class and the jurisdiction in which the asset is located. The principal methods of sale are (a) private treaty (b) public auction (c) public tender (d) sealed bids and (e) other disposal mechanisms tailored to the specific characteristics of the underlying property. In certain limited circumstances, NAMA may agree an alternative form of property disposal as recommended by the insolvency practitioner.
At all times, NAMA will operate in a manner that is in accordance with the insolvency practitioner’s statutory obligation to achieve the best possible price reasonably obtainable for the property at the time of sale. Where an insolvency practitioner is appointed, he/she will determine the most appropriate method of sale for the property in order to secure the best possible price.
How can I place a bid on a particular property that is already for sale with a sales agent?
Where an asset is for sale with a sales agent, please contact the sales agent directly who will provide you with property details. The sales agent will manage the sales process on behalf of the insolvency practitioner.
Where a sales agent is not yet appointed, please email the insolvency practitioner who will record your interest. When the sales agent is appointed, the insolvency practitioner will provide your contact details to him/her and you will be contacted by the sales agent to be advised of property details, pricing etc.
How do I find out the price of a property that is listed on the Enforced Properties Listing?
Where a sales agent is appointed, contact the sales agent who will provide you with details of the method of sale and an indication of the price of the property that is for sale. Where a sales agent is not yet appointed, please email the insolvency practitioner who will record your interest. When the sales agent is appointed, you will be contacted by the sales agent to be advised of property details, pricing etc.
How much can I expect to pay for an asset that is listed on the NAMA website?
The insolvency practitioner has a legal responsibility to achieve the best possible price reasonably obtainable for the property at the time of sale. The insolvency practitioner, in liaison with NAMA, will manage the sales process having due regard to market factors and will determine an appropriate price level having taken professional advice.
When registering an interest with the insolvency practitioner, what information do I need to provide?
At a minimum, you should provide:
• The name of the property in which you have an interest*
• Your full name
• Your full postal address
• Your contact phone number
• Your Email address (where available)
*Where the property listed comprises a mix of residential, retail, office units, please describe, as specifically as possible, the property in which you have an interest. For example, state:
• I am interested in a 2-bed apartment in X scheme
• I am interested in a retail unit, 2,500 sq ft if available, in X scheme
• I am interested in office space, fully fitted out if available, in X scheme
Where a property is not currently on the open market for sale, and where I register an interest in a particular property, when can I expect to hear back with respect to the interest that I have registered?
The insolvency practitioner will maintain a record of all interests that are registered. You must email the insolvency practitioner at the given email address in order for your interest to be registered. You can copy email@example.com if you wish. These interests will then be passed on to the sales agent when the sales agent is appointed who will in turn contact you to advise you of property details, pricing etc. The timing of the property being placed on the market for sale will vary from property to property depending on the particular circumstances of that property. However, the insolvency practitioner, in most cases, will be in a position to guide you with an indicative timeframe.
Where a property is not currently on the open market for sale, how long do I have to wait until it comes on the open market?
Properties will be offered for sale as soon as is practically possible. However, in some cases the insolvency practitioner will defer the sale of the property due to specific circumstances such as legal issues or because steps are to be taken to enhance or improve the property in order to achieve the best possible price. As such, in certain circumstances, the appointment of an insolvency practitioner will not immediately result in the property being placed on the open market for sale. The timeframe for disposing each property will therefore be determined on a case-by-case basis.
Where an asset is listed on the Enforced Properties Listing, and where a sales agent is not yet appointed, what additional information can I obtain on that asset to determine whether I want to register an interest or not?
The insolvency practitioner will provide enquirers with such a level of detail as they consider appropriate to enable the enquirer make an informed investment decision. There may however be occasions, for varying reasons, primarily legal issues, where the insolvency practitioner may not be able to provide you with full information on the property. When a sales agent is appointed, the normal level of information that is typically available to interested purchasers for the given asset class (e.g. private residential, commercial investment) will be disclosed by the sales agent with respect to the property that is for sale.
How do I know whether a property is currently on the open market for sale?
When a property is on the open market for sale, the insolvency practitioner will appoint a sales agent to manage and execute the sales process. NAMA will publish, on the Enforced Properties Listing, contact details of the sales agent when he/she is appointed. This will be updated at the end of each month.
If you are interested in a property that is not currently on the open market for sale (i.e. with no sales agent appointed), please email the insolvency practitioner who will record your interest. You may also copy firstname.lastname@example.org if you wish but the contact point is the insolvency practitioner. When the sales agent is appointed, the insolvency practitioner will provide your contact details to the sales agent who will in turn contact you to outline property details, pricing etc.
Are all properties listed on the Enforced Properties Listing currently available to buy?
It is NAMA’s view that properties should be offered for sale as soon as is practically possible. Some properties require additional work before they can be put for sale. The insolvency practitioner will however determine the appropriate time to place the property on the open market for sale.
Are all NAMA enforced properties for sale?
Insolvency practitioners have been appointed over all of the properties listed and it is the role of the insolvency practitioner to dispose of the property, achieving the best possible price reasonably obtainable for the property at the time of sale. However, in some cases the insolvency practitioner may defer the sale of the property given (for example) specific circumstances such as legal issues or he/she will decide to take steps to enhance or improve the property in order to achieve the best possible price. As such, the appointment of an insolvency practitioner may not immediately result in the property being placed on the open market for sale.
What is an Insolvency Practitioner? What is his/her role in the sales process of NAMA properties that have been enforced against?
An insolvency practitioner is a generic term used to describe the party that has been appointed by either a bank/NAMA or a court to take charge of a property with a view to disposing it to repay the loan that is secured by the property. In most cases in Ireland, the insolvency practitioner listed by NAMA on the enforced properties list will be a receiver and/or statutory receiver.
The powers of the insolvency practitioner (receiver), where appointed, will be determined by the law and the original mortgage (or debenture) documentation entered into by the borrower and the bank. In some cases, a power to manage and trade the property will exist alongside the power to dispose of the property.
Questions about Social Housing
Can NAMA, through its debtors and receivers, contribute to meeting demand for social housing in Ireland?
Yes. NAMA has identified over 3, 800 residential properties controlled by its debtors and receivers as being available and potentially suitable for social housing provision. The Housing Agency, together with housing authorities, has assessed 2,500 of these properties to date and demand has been confirmed for approximately 1,500 of them. In certain cases, properties have been deemed unsuitable by housing authorities by virtue of the requirement to avoid undue segregation in housing or have become unavailable over time (that is, sold or privately let by debtors and receivers).
The process of assessing suitability and confirming demand is on-going for the remaining units. Many of those confirmed to date are already in the process of negotiation with Approved Housing Bodies (AHBs) for either acquisition or leasing.
The Agency’s identification of over 3,800 units represents potentially one of the single largest allocations of social housing in the history of the State.
How do housing authorities access the 3,800 NAMA related housing units identified as being available for social housing provision?
Following proactive engagement between NAMA, the Housing and Sustainable Communities Agency (Housing Agency) and the Department of the Environment, Community and Local Government, a process has been established to ascertain whether the identified residential properties are suitable for the social housing needs of housing authorities and other prescribed housing bodies. An important consideration for housing authorities when assessing the suitability of identified houses and apartments is the requirement to provide for an appropriate mix of housing tenures and to avoid undue segregation in housing within developments and specific areas.
The onus is on housing authorities to establish the suitability of the property concerned. Once demand has been confirmed, NAMA facilitates contact and negotiation between its debtor/receiver and the authority concerned. Contractual arrangements can take the form of a lease, or, in certain circumstances in the case of Approved Housing Bodies (AHBs), there is scope to acquire the properties which are then made available to housing authorities under a payment and availability agreement.
In addition, following a review by NAMA of the issues involved in the delivery of properties to the social housing sector, a special purpose vehicle, National Asset Residential Property Services Limited, has been established to facilitate its commitment to provide residential properties for social housing purposes and to provide housing authorities and AHBs with an opportunity to access properties located in key areas of demand. The SPV will operate by purchasing properties directly from debtors or receivers and making them available to housing authorities and AHBs by way of a long term lease. In this way a number of the issues arising from the provision of properties for social housing can be addressed and the process can move more quickly.
Who do I contact?
All expressions of interests or queries from housing associations in relation any of the properties identified by NAMA should be directed to the Housing Agency – http://www.housing.ie/
Is there a distribution, by local authority area, of the housing units identified by NAMA as potentially available?
Yes. The table below provides a breakdown, on a local authority basis, of where the units identified as being potentially suitable are located.
Table: Properties controlled by NAMA debtors/receivers potentially available for social housing Total 3860 Local Authority Number of properties Carlow Co. Co. 137 Cavan Co. Co. 47 Clare Co. Co. 166 Cork City Council 419 Cork Co. Co. 424 Donegal Co. Co 93 Drogheda Borough Council 15 Dublin City Council 580 Dún Laoghaire-Rathdown Co. Co. 301 Fingal Co. Co. 200 Galway City 88 Galway Co. Co. 17 Kerry Co. Co. 90 Kildare Co. Co. 190 Kilkenny Co. Co. 179 Laois Co. Co 59 Leitrim Co. Co 35 Limerick Co. Co 74 Longford Co. Co 31 Mayo Co. Co 66 Meath Co. Co. 203 Monaghan Co. Co 35 Offaly Co. Co. 79 Roscommon Co. Co. 91 Sligo Co. Co 46 South Dublin Co. Co. 18 Tipperary Co. Co 23 Waterford Co. Co. 35 Westmeath Co. Co 32 Wexford Co. Co 58 Wicklow Co. Co. 29
Questions about NAMA itself and the loans it has acquired
How long will NAMA exist?
NAMA will be wound up when the Minister for Finance determines that its continued existence is no longer necessary. Staff employed by NAMA are on fixed purpose contracts which means that their contracts will be terminated when the Agency’s work is concluded.
What does NAMA mean for debtors?
NAMA has acquired the loans of some 850 debtors to date. The Agency will directly manage the debts of the largest 180 of these debtors. The rest will be managed by the participating institutions under delegated authority from NAMA.
NAMA’s objective is to obtain the best return for taxpayers. It must make a judgement in each case whether its objective is best achieved through working with the debtor or enforcing against him. The decision to support a debtor or enforce against him is heavily influenced by the outcome of the business plan process which begins as soon as a debtor’s loans are acquired. Agreement with a debtor on a viable business plan allows NAMA to work with the debtor consensually to ensure repayment, to the greatest extent feasible, of the loans due. Where it makes commercial sense to advance further money to a debtor in order to complete a project which can then be sold to pay down debt, NAMA will do so.
However, where a debtor cannot meet his obligations or is unwilling to reach a reasonable accommodation with NAMA, the Agency will initiate enforcement action to take control of the assets underlying the loan.
For more information on the debtor business plan process, please see the Debtor Business Plans page of this website.
For more information of NAMA governance and accountability, please see the Governance section of this website.
What is NAMA’s financial objective in relation to its acquired loans?
Under Section 10 of the NAMA Act, NAMA is required to obtain the best achievable financial return for the State having regard to the cost of acquiring and dealing with loans and any other costs incurred in preserving or enhancing the value of property securing them. Over time, NAMA aims to recover loan acquisition and ancillary costs from receipts of loan interest and principal from debtors and from loan repayments generated by sales of property assets by debtors or by receivers appointed by NAMA.
The NAMA Business Plan (published in July 2010) projected, under its central scenario, that the Agency would return a profit to the taxpayer of €1.0 billion in Net Present Value (NPV) terms over its lifetime (expected to be about ten years).
Why is it necessary to pay fees to advisers?
The transfer of loan balances in the order of €74 billion from certain financial institutions to NAMA is an exceptionally large transaction. For all parties to the transaction – the State as the purchaser of loans, the institutions as sellers and the EU Commission as overseer of State aid rules – it was vital that the transaction be valued rigorously and comprehensively. This necessitated the involvement of professional advisors in their capacity as valuers, lawyers and financial experts to carry out the due diligence on the loans and on the underlying property and other assets.
NAMA secured these services on a very cost-effective basis due to a competitive and thorough public procurement process used by the Agency. The cost of the services – €30m in 2010 – has been recouped from the banks through a deduction in the price paid by NAMA for the loans. The benefits of rigorous due diligence have exceeded the costs by a significant multiple – the identification of deficiencies in loan security has meant that NAMA has saved closed to €300m on what it would otherwise have paid for the loans concerned.
How was the market value of property determined?
In order to ensure consistency of treatment for all loans, regardless of when they were acquired by NAMA, it was considered that a single reference valuation date should be used for the purpose of valuing underlying property assets. This date was fixed at 30th November 2009. Each property was, in the first place, valued by an expert valuer employed by the participating institution but also owing a legal duty of care to NAMA. NAMA reviewed each valuation and, where it considered a valuation to be excessive, it referred it to an independent third-party valuer. This third-party valuation is accepted by NAMA and used as part of the loan valuation.
What is the NAMA ‘discount’ or ‘haircut’?
In simple terms the discount is the difference between the nominal value of a loan (the outstanding loan balance) and the price NAMA paid for it. To date, the portfolio of loans has been acquired by NAMA at an average discount of 57% – nominal loan balances to the order of €74 billion have been acquired for a consideration of €31.6 billion, a discount of over €42 billion or 57%.
How were the loans valued?
The valuation methodology for the transfer price of loans was determined by the EU Commission and requires NAMA to take a view on the long-term economic value of the property assets securing the loans. Taking into account also the impact of prospective enforcement costs and discounting, the price paid for each loan tends to be closely aligned to the current market value of the property securing it. For instance, a loan for €10m may originally have been advanced by a bank for a property which was then valued at €11m (debtor equity of €1m). The property is currently considered to be worth €6m. The effect of applying the valuation methodology is that NAMA pays close to €6m for the loan. Where there are defects in security and documentation which could reduce further the sales proceeds of the property, appropriate discounts are applied to reflect the likely impact of these defects.
Why did NAMA acquire these loans?
NAMA was established to take property-related loans off the balance sheets of the participating institutions and to give them Government-guaranteed securities which could be used as collateral with the European Central Bank. As a result, the five institutions were provided with over €30 billion in liquidity which they would not otherwise have been able to access.
What loans has NAMA acquired?
NAMA has discretion to acquire eligible assets as defined by the NAMA Act. These include loans advanced for land and development purposes and associated property loans. To date, NAMA has acquired property-related loans with nominal balances in the order of €74 billion from the five institutions participating in the NAMA scheme. The loans were advanced to 850 debtors and relate to some 16,000 properties. As payment, NAMA issued Government-guaranteed securities to a value of €31.6 billion to the institutions concerned (95% of the consideration is in the form of Senior Bonds and 5% in the form of subordinated debt).
Why does NAMA not publish a list of all its debtors?
NAMA is prohibited under the NAMA Act from disclosing confidential information. Confidential information is specifically defined to include information relating to debtors. Furthermore, the Act provides that, on acquisition of a loan, NAMA takes over the obligations of the participating institution under the loan, one of which is the contractual duty of confidentiality which the debtor enjoyed while still a customer of the participating institution. For these reasons, NAMA cannot disclose details about debtors as to do so would leave it open to litigation. Information about individual debtors or guarantors is also protected against disclosure by the Data Protection Acts with which NAMA must comply as a data controller. A change in the law would therefore be required to enable NAMA to disclose information about debtors.