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NAMA pays two billion euro in first payment to the Irish Exchequer

The total payment to the Exchequer is expected to be €4.4bn by 2022.

File Photo: NAMA Chief Executive Brendan McDonagh and Minister for Finance Paschal Donohoe
File Photo: NAMA Chief Executive Brendan McDonagh and Minister for Finance Paschal Donohoe
Image: Sam Boal/RollingNews.ie

TWO BILLION EURO has been paid by NAMA to the Exchequer in its first payment to the state since it was set up. 

The two billion is the first half of the total projected surplus.

According to NAMA’s annual report, after-tax profits of €265 million in 2019 allowed the body to make the payment.

Additional sums will make up the balance and are expected to be paid in 2021 and 2022. 

Total corporation tax payments have hit €346 million, with NAMA’s lifetime Exchequer contribution expected to reach €4.4 billion.

The agency is now debt-free and 100% owned by the Minister for Finance. 

The report also details how NAMA made €1.34 billion in cash in 2019, with €1.2 billion from the sale of both loans and property.

Finance Minister Paschal Donohoe welcomed the first payment, saying that it would help the government through the Covid-19 crisis by reducing the amount of money the state will need to borrow.

“The money has been earmarked for spending and will greatly assist the Government in delivering appropriate supports for individuals and businesses impacted by Covid-19 in the coming months,” said Donohoe.

According to the report, 17,380 new homes have been funded or facilitated by NAMA since 2014.

87% of these homes are located in the Greater Dublin Area, with 67% within Dublin county. 

Of this, 11,860 were directly funded by NAMA, compared to 5,520 which were indirectly funded.  

2,250 units are currently under construction or have had their funding approved. 

Planning permission has been secured for 6,200 additional new homes, with 8,100 currently in the process of securing planning permission. 

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2,614 social housing units have also been delivered, exceeding the original targets of 2,000. 

Chief Executive of NAMA Brendan McDonagh said that 2019 was a year of “excellent progress” as NAMA enters its ninth year in a row having generated a profit.

However, McDonagh did warn of the economic impacts Covid-19 could have, saying:

“We are alert to the economic risks created by Covid-19 and will be vigilant in the way we seek to mitigate these risks and maximise our lifetime surplus for the Exchequer.”

NAMA Chairman Aidan Williams thanked the board, saying that NAMA has delivered by maximizing their assets for the state’s benefit. 

“NAMA’s efforts over the past decade have been in pursuit of one goal and this transfer means everyone in Ireland is sharing in NAMA’s success in reaching that goal.”

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