Nama’s capacity to build ‘limited’

NAMA’S capacity to build more affordable homes is ‘limited’, according to Finance Minister Michael McGrath.

The National Asset Management Agency is projected to return at least €4.9billion to the Exchequer by the end of its wind down next year, the minister said.

So far, the agency has transferred €4.25billion to the Exchequer, made up of €3.85billion from its lifetime surplus and more than €400million in corporation tax payments.

Mr McGrath said Nama – set up by the government in 2009 after the financial crash – had been ‘very effective’ in managing its loan portfolio and maximising value of its assets.

He said it had consistently generated profits over a 13-year period and ‘exceeded expectations’, adding: ‘Nama has facilitated the delivery of housing at significant scale – 34,000 new homes were funded or enabled by Nama by end-2023. Nama made a major and long-lasting contribution to the regeneration of Dublin Docklands through the delivery of extensive new commercial and residential space.’

But on Nama’s capacity to deliver more affordable housing, Minister McGrath said it would be ‘limited’. He said Nama has a statutory mandate to maximise return while contributing to other State objectives. Mr McGrath said it would continue to look for opportunities to build more homes, adding: ‘Given their overall portfolio is only about 1% of what it was at the peak – about €450million – I think the further capacity to build more homes will be limited.’ He gave an update on the special liquidation of the Irish Bank Resolution Corporation, saying the IBRC loan portfolio had a par value of €21billion, consisting of more than 15,000 borrower groups and was supported by collateral based in 22 different jurisdictions worldwide. He said it is now ‘timely’ to make arrangements for Nama and the special liquidation of the IBRC to conclude their work.