The National Asset Management Agency (Nama) transferred €500m to the Exchequer in 2022, down from €1bn the year before, according to the agency’s 2022 end of year review.

This brings to €3.5bn the total cash transfer to the Exchequer to date.

Nama’s primary function was to recoup the billions advanced to the agency to acquire distressed property assets. €30.2bn of senior debt was repaid in full by October 2017 while in March 2020 the agency paid back €1.6bn of subordinated debt.

For the past three years, Nama has been managing residual assets.

Nama is under instructions from the Minister for Finance to wind up operations by the end of 2025. The agency has pledged that asset disposals and other income will generate a further €1bn for the Exchequer before it winds up.

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However, the agency cautioned that the additional €1bn in surplus transfers is “subject to market conditions”.

In October 2022 the agency cautioned: "The volatile global economic environment may cause disruption to market and construction activity in 2023. Construction cost inflationary pressures and supply chain disruption pose a significant challenge to the commercial viability and planned delivery of new homes from Nama secured sites.

"This potential market disruption may also delay debtor exits, and defer asset/loan sale transactions, all of which may impact the pace at which Nama’s portfolio reduces."

Nama has committed to delivering 1,800 new residential units through its own activities from 1 January 2022 to end-2025, “subject to commercial viability”.

As of October 2022, 284 new homes had been delivered with a further 758 new homes under construction. The agency warned last autumn that “commercial viability is a significant challenge and could have an impact on the number of units for which Nama can provide funding”.

In the end of year review, there is no update on new homes delivery, beyond the comment that the agency will directly fund the delivery of 400 homes in 2023.

The value of Nama’s residual portfolio of loan and property assets at end-December 2021 was €1.1bn. The 2022 end of year review does not clarify to what extent this figure has reduced.

The agency has warned the Department of Finance that the resolution of the Nama entity may take several years after completion of the bulk of its deleveraging activity, in order to deal with any unresolved litigation and remaining assets including those loans secured by assets which are considered to have significant potential value uplift.

Nama’s outlays for 2023 are budgeted at €45m. The agency has 110 staff whose employment is with the NTMA, including 32 people in the finance unit.

In 2021, the average salary was €110,000 and the average pension contribution was €15,000.

Chief executive Brendan McDonagh, whose remuneration package is €450,000 p.a., commented: “Nama continued to generate cash throughout 2022, with almost €450m achieved from disposals and asset sales. As we look toward the final phase of Nama’s work, through to the end of 2025, we are determined to deliver the largest return possible to the taxpayer and to maximise the value of the remaining assets.”

Photo: Brendan McDonagh. (Pic: Chris Bellew / Fennell Photography)