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NAMA could make a profit for State

Wednesday, July 16 11:55:09

At a minimum, NAMA will redeem all of the senior E30.2bn in bonds issued, cover its own costs and perhaps make a surplus for the State as well as support thousands of jobs.

That's according to the latest Review of the National Asset Management Agency published by Finance Minister Michael Noonan and the Agency, which adds that it is an important support for the economy.

NAMA directly supports 15,000 jobs and each sale is followed by significant increases in building activity and jobs, the Review concludes.

"Based on NAMA's performance to date and its financial projections in light of the strength of current investor interest in Ireland, NAMA is well positioned to achieve its objectives and so continues to be necessary," it said.

Commenting on the publication of the review Minister Noonan said that, since its inception, NAMA has made steady progress in securing value for the Irish taxpayer and is well positioned, if market conditions remain strong, to not only redeem its debts and cover its costs ahead of target but to generate a surplus.

"In addition, NAMA has played a very significant role in attracting investment into Ireland, supporting the building and construction industry and supporting 15,000 jobs in Ireland through trading businesses linked to their loans. Based on the assessment published today and in line with Section 227 of the NAMA Act I accept the conclusions of the Review that NAMA has made significant progress in achieving its overall objectives and continues to be necessary," he added.

The minister said that NAMA should continue operating in the domestic property market even after it has sold the vast majority of its distressed property loans, which are set to be disposed of by 2018, two years ahead of schedule.

The Minister pointed to plans for Dublin's Docklands as an example of the difference NAMA is making to the economy.

"While NAMA was created out of necessity during an economic and banking crisis I firmly believe it can play a major role in Ireland's economic recovery. By year end NAMA will have redeemed 50pc of its senior debt, two years ahead of schedule and the new redemption target of 80pc by 2016 strikes the right balance between reducing debt and maximising the return to the taxpayer. It should not be forgotten that many NAMA sales transactions generate building and construction activity," he said.

"The Dublin Docklands area presents a unique opportunity for NAMA and the Irish taxpayer. It is rare that such large swathes of prime waterfront land in a modern city such as Dublin has remained undeveloped. It is even rarer that the ownership of such land rests in a State organisation providing the opportunity for truly joined up planning, development and construction of such a large and important area. NAMA now has the opportunity to bring this area to life and create a Dublin Docklands that will rival the likes of London's Canary Warf, Boston's Seaport and Singapore's Marina Bay," the Minister added.

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