Dáil Éireann Debate, Wednesday - 8 July 2026
63. Deputy Carol Nolan asked the Tánaiste and Minister for Finance to state or estimate the original establishment cost of the National Asset Management Agency (NAMA), including the initial cost of acquiring loans, bad debts and properties; and the total net return to the State from NAMA in the intervening period, taking account of inflation where possible. [52075/26]
View answerThe National Asset Management Agency (NAMA) was established in 2009 as part of the State's response to the global financial crisis, with the objective of acquiring and working out impaired property-related loans from participating financial institutions.
NAMA acquired loans from five participating institutions with a total par value of approximately €74 billion. The consideration paid by NAMA for those loans was €31.8 billion, comprising €30.2 billion of senior debt and €1.6 billion in subordinated debt. The independently assessed market value of the acquired loans at the time was approximately €26.2 billion, with an additional State aid uplift of €5.6 billion applied to support the banking system.
In relation to establishment costs, NAMA received a working capital loan of €250 million from the Minister for Finance in May 2010 to fund establishment and operating costs. This loan, together with accrued interest, was repaid in full by NAMA later that year. NAMA also received a temporary equity-related loan of €49 million from the Minister for Finance in March 2010, which was similarly repaid in full, with interest, in February 2011. NAMA's annual operational and administrative costs have been published in its Annual Reports and Financial Statements throughout its existence.
NAMA has now substantially completed its mandate. It redeemed its €30.2 billion of senior debt in 2017, three years ahead of schedule, and fully repaid its €1.6 billion of subordinated debt in 2020, leaving the Agency debt free.
NAMA will deliver an overall lifetime contribution to the State of approximately €5.6 billion. This comprises approximately:
• €4.7 billion in cash transfers to the Exchequer;
• More than €450 million in corporation tax; and
• The transfer of assets valued at approximately €425 million to the Land Development Agency to be retained in State ownership.
In addition, NAMA fully recovered the €31.8 billion it paid for the acquired loan portfolio, including the full recoupment of the €5.6 billion State aid uplift that was applied above the portfolio value of €26.2 billion.
The Comptroller and Auditor General has estimated that NAMA will achieve a lifetime rate of return of approximately 6.8%, which exceeds the expectations that existed at the time of its establishment during the financial crisis.
As regards inflation adjustment, neither NAMA nor the Department routinely publishes inflation-adjusted estimates of its lifetime financial contribution. However, even when viewed over the full duration of its operations, NAMA not only recovered its acquisition costs but generated a significant surplus for the State while also contributing to wider economic objectives, including the stabilisation of the banking system, the restoration of confidence in financial markets and the facilitation of substantial housing and commercial development activity.
