DÁIL QUESTION NO 200

To ask the Minister for Finance his views on widely circulated reports of property developers with loans that have been transferred to National Assets Management Agency who are living abroad in trophy houses; if his attention has been drawn to the upset these reports are causing among the general public at a time of severe tax hikes and spending cuts; and if he will make a statement on the matter.

– Joan Burton.

* For WRITTEN answer on Thursday, 16th December, 2010.

Ref No: 48082/10

REPLY

Minister for Finance ( Mr Lenihan) :

In relation to asset transfers, in circumstances where it is obvious that the purpose of an asset transfer, whether to a spouse or otherwise, was a pre-emptive attempt to put assets beyond the reach of NAMA, NAMA has a number of statutory remedies available to it. These include the provisions of the Conveyancing Act, the Land and Conveyancing Law Reform Act 2009 and some provisions of the NAMA Act. Section 211 of the Act provides that NAMA may apply to a Court to declare a disposition to be void if it can show that the effect of the disposition was to impair the value of an eligible bank asset or any rights that NAMA would have acquired but for the disposition.

Ultimately, where the evidence available to NAMA is that a debtor has failed, as part of a sworn statement, to disclose all his assets as part of the debtor business plan process, he will be faced with very serious consequences. NAMA has made it very clear that it will not work with debtors who fail to co-operate fully and openly with it. NAMA will also pursue through the courts debtors who fail to co-operate with it in terms of agreeing to the reversal of asset transfers or to the granting of legal charges over unencumbered assets.

I am aware that the Chairman of NAMA has recently outlined a range of measures which the Agency is adopting in its drive to ensure that debtors meet their obligations. In addition to significant lifestyle changes which are being forced on these debtors, they are also required to reverse asset transfers and to grant NAMA legal charges over their unencumbered assets. I am informed that three debtors have already agreed to the reversal of some €130m in asset transfers as part of their business plan agreements with NAMA.