Written Answers. - Parliamentary Debates - Houses of the Oireachtas

[Deputy Michael Noonan.]
Questions— 14 February 2012. Written Answers
core portfolios. The key principle governing the definition of core portfolios was the need to
service the retail, SME and corporate banking requirements of the Irish economy, including
cross-border trade and investment, acknowledging that some limited element of international
business remains essential. In doing so, the banks needed to ensure that at the end of the
process a viable core bank, independent of direct or indirect State support and capable of
returning to the capital markets in the medium term, would remain. To this end, separate Noncore
teams have been established by each of the banks to focus on managing the deleveraging
process. AIB’s Non-core team continues to manage AIB’s deleveraging as required under the
Financial Measures Programme.
AIB is in the process of agreeing its Restructuring Plan with the European Commission.
Once that process has concluded compliance with its commitments will be monitored by a
Monitoring Trustee approved by the Commission. My understanding is that the Restructuring
Plan will not prescribe a particular method or structure of sale. Normally a bank retains the
ability to conduct deleveraging using the most appropriate structure for that transaction, in
order to obtain a competitive price whilst satisfying any further requirements under its Restructuring
Plan. I have been informed by AIB that for material disposals, it often uses the services
of agents in the marketing and sales process if it believes this will ensure the price achieved on
disposal of assets is maximised.
National Asset Management Agency
149. Deputy Gerry Adams asked the Minister for Finance if the National Asset Management
Agency continues to pay salaries to NAMA borrowers when NAMA has appointed receivers
over their assets; if NAMA allows the NAMA borrower to recoup any rental income from
assets where receivers have been appointed over their assets; and if he will make a statement
on the matter. [7692/12]
150. Deputy Gerry Adams asked the Minister for Finance the funds made available to
NAMA borrowers from assets which are in NAMA to pay for the legal fees incurred by the
borrower in attempting to prevent NAMA appoint a receiver over their assets; the number of
borrowers in NAMA who have commenced proceedings against NAMA but continue to
receive a salary from NAMA in accordance with their agreed business plans with NAMA; and
if he will make a statement on the matter. [7693/12]
151. Deputy Gerry Adams asked the Minister for Finance the number of borrowers in the
National Asset Management Agency who have one or more performing assets in NAMA; if
these NAMA borrowers are allowed recoup income from the performing NAMA asset as well
as the salary which the borrower is receiving from NAMA in accordance with their business
plans with NAMA; and if he will make a statement on the matter. [7694/12]
Minister for Finance (Deputy Michael Noonan): I propose to take Questions Nos. 149 to
151, inclusive, together.
I am informed by NAMA that it does not pay salaries to its debtors. In certain cases, NAMA
allows debtors to retain part of the income from their income-producing assets to pay overheads,
including salaries. In other cases, such as development assets, NAMA will provide funding
for overheads to enable works to be brought to completion, where this makes commercial
sense.
On appointment, one of the duties of a receiver is to take control of the assets and any
income produced by them will therefore no longer be available to the debtor concerned.
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