Minister’s Brief

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3.2.3.4 NAMA Specialist - Declan Reid Des Carville Head of Unit Shareholding Management Unit Declan Reid Specialist Shareholding Management Unit - NAMA and IBRC Page 118 of 184
Key Points: NAMA was established in late 2009, as an independent statutory body, to remove problem loans, secured by property and development land, from participating banks. NAMA acquired €74.2bn of gross loans, paying the banks €30.2bn ECB eligible, Government guaranteed senior bonds and €1.6 billion unguaranteed subordinated bonds (an aggregate 57% discount to par). NAMA’s primary mandate, under section 10 of the NAMA Act, is to preserve and enhance the value of its loans and underlying security and to achieve best financial return to the State from the management, work-out and sale of such assets. The Government guarantee of NAMA’s senior bonds creates a contingent liability for the State. Through the redemption of €22.1bn (73%) of guaranteed senior bonds, to date NAMA has reduced this contingent liability to €8bn from the original €30.2bn. NAMA anticipates repaying its senior debt in full by end-2018, repaying its subordinated debt in full in March 2020 and, subject to continuing favourable market conditions, returning a surplus of €2bn to the Exchequer once its work is completed. NAMA is currently pursuing three complimentary objectives – each consistent with the purposes of the Act and its primary mandate. These are set out in order of priority below. 1. Financial Objectives a) Redeem 80% (€24.1bn) senior debt by end-2016; b) Redeem 100% (€30.2bn) by end 2018; c) Redeem €1.6bn subordinated debt in March 2020; d) Maximise expected surplus to be returned to the State when work is complete (currently estimated to be €2bn) 2. Fund delivery of Grade A office, retail and residential space on sites securing NAMA’s loans in the Dublin Docklands Strategic Development Zone (SDZ) and Dublin's Central Business District on a commercial / profit maximising basis. 3. Fund delivery of 20,000 residential housing units, on a commercial / profit maximising basis by end 2020 on sites securing NAMA's loans. It is not expected to be necessary, for the achievement of the purposes of the NAMA Act, to extend the life of NAMA beyond 2020. However, the prior redemption of both the Senior and Subordinated Bonds provides a level of flexibility in how NAMA’s surplus is realised and transferred to the State. It is expected that NAMA’s SDZ and residential housing funding activities, will significantly enhance the value of the collateral supporting the debts owed by NAMA debtors. The real estate and financial assets supported by NAMA funding will have reached various stages of development by 2020, and will comprise a significant portion of the value of the NAMA surplus. Consideration is being given to the expected composition of these assets Page in 2020 119 of and 184 the strategy for realising their value as part of the delivery of NAMA’s surplus due to the State.
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Minister’s Brief 2016 s Page 1 of
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3.2.1.1 Policies on Mortgage Arrear
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1. Introduction For the purposes of
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2.1 Economic and Fiscal Directorate
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2.2 Finance and Banking Directorate
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3. Detailed Briefing Page 11 of 184
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3.1.2 Economic Division Description
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Detail: Economic Outlook Pr
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3.1.2.2 Microeconomic analysis unde
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changes in the relevant tax base) a
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3.1.2.3 Economic coordination inclu
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3.1.2.4 Budgetary/fiscal policy, go
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Assessment of compliance with SGP o
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was a deviation from the fiscal rul
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tax, followed by personal income ta
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Tax Strategy Group - What Does It D
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Detail: Income Tax Policy Income Ta
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Credit in 2014 - that credit was of
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INCOME TAX INCENTIVES Agri-Taxation
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Marine taxation In Budget 2016, a r
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Detail: Indirect Tax Policy Tax Hea
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outcomes, then it was proportionate
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More fundamental threats to tobacco
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3.1.3.4 Finance Bill co-ordination,
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ise in both equity markets and prop
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Tax Head 2007 (€m) 2013 (€m) 20
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3.1.3.5 International taxations, co
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fully in line with the new OECD req
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3.1.5.1 EU Economic Governance issu
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At EU level, the Governance section
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3.1.5.2 EU-IMF Post Programme Monit
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2. EU Funding Mechanisms/ Programme
Page 66 and 67: Detail: The EU Strategy Unit manage
Page 68 and 69: 3.1.5.4 International Relations Uni
Page 70 and 71: 3.1.5.5 Permanent Representation of
Page 72 and 73: 3.2 Finance and Banking Directorate
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Page 76 and 77: available is €1.8 million. Initia
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Page 81: deemed necessary, it may be prefera
Page 84 and 85: Detail: Key Initiatives to achieve
Page 86 and 87: 5. Majority of credit requests cont
Page 88 and 89: 3.2.2 Financial Services Division D
Page 90: A further group is reviewing the re
Page 93 and 94: financing would be available to cov
Page 95 and 96: o Cumulative impact of financial le
Page 97 and 98: 3.2.2.2 National and EU policy and
Page 99 and 100: Securities The draft EU Prospectus
Page 101 and 102: In addition a full view of the fina
Page 103 and 104: "packaging", wrapping or bundling t
Page 105 and 106: 3.2.3 Shareholding Management Unit
Page 107 and 108: 3.2.3.1 State’s Banking Investmen
Page 110 and 111: 3.2.3.2 State’s shareholding in A
Page 112: sheet continues to contract, albeit
Page 120 and 121: Detail: NAMA Background As part of
Page 123 and 124: 3.2.3.5 IBRC (in special liquidatio
Page 125 and 126: In February 2013 the Irish Bank Res
Page 127 and 128: 3.2.3.6 State’s shareholding in P
Page 129 and 130: PTSB’s return to profitability ha
Page 131: Credit Union Restructuring Board (R
Page 134: 3.2.3.8 Management of all legal mat
Page 137 and 138: 3.2.4.1 Risk and Financial Stabilit
Page 139 and 140: • development and maintenance of
Page 141 and 142: epresented and an Industry Advisory
Page 143 and 144: 3.2.4.1 Management of FoI and PQ pr
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Page 147 and 148: 3.2.4.1 Liaison with the Attorney G
Page 149 and 150: 3.2.4.2 Management of the Accountan
Page 151 and 152: Future Developments The vote accoun
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Page 155 and 156: Key Points: International Monetary
Page 157 and 158: with the delegation led by Second S
Page 159 and 160: assistance to the developing world.
Page 161 and 162: In addition to capital contribution
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Page 165 and 166: 3.3 Corporate Page 165 of 184
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supported by OPW and a number of ex
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3.3.2. Corporate Affairs Descriptio
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member, the Department has a Busine
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ability of both electronic files an
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3.3.3. Human Resources Division Des
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Detail: 1. Organisational Structure
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effectively to improve and deliver
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The Department is currently reviewi
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Erosion of income tax base did not
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