The general scheme of the Conclusion of IBRC Special Liquidation and Dissolution of NAMA Bill 2024 has been approved and the bill will now go forward to priority drafting.

When enacted, the legislation will facilitate the orderly conclusion of the special liquidation of the IBRC by the end of 2024 and the dissolution of NAMA by the end of 2025, in accordance with NAMA’s 2021 strategic plan.

The government expects there to remain some residual activity for both entities after their work has concluded. To manage this residual activity from 2026 until completion, the legislation will provide for a new resolution unit to be established within, and resourced by, the NTMA following the dissolution of NAMA at the end of 2025.

Through the special liquidation process, approximately €1.7 billion has been paid by IBRC to State agencies through the unsecured dividend payment process and the first surplus transfer from the IBRC to the State was received in December 2023, totalling €35 million. Deleveraging activity will continue through to the end of 2024 with further realisations to come.

By the time NAMA is dissolved at the end of 2025, the NAMA board currently projects that NAMA will have generated a lifetime return of at least €5.2 billion to the exchequer. Some €4.25 billion of NAMA’s projected surplus has already been paid to the exchequer.

Prior to the conclusion of their respective work mandates, both the IBRC and NAMA will continue to deleverage their remaining portfolios, in an effort to minimise the residual activity due to be inherited by the resolution unit and maximise the possible return to the State on the remaining assets.

Finance minister Jack Chambers said: “I am pleased to have secured government approval today on the proposed general scheme of the Conclusion of IBRC Special Liquidation and Dissolution of NAMA Bill 2024.

“This legislation will importantly provide for necessary arrangements to allow both NAMA and the IBRC special liquidation to conclude their respective work mandates, including through the establishment of a resolution unit in the NTMA to manage any residual activity of both entities from 2026 until completion.

“The special liquidation of the IBRC commenced over 10 years ago, with a loan portfolio of par value of €21 billion, consisting of over 15,000 borrower groups and supported by collateral based in 22 jurisdictions worldwide.

“I want to take this opportunity to formally acknowledge the exceptional progress made by the special liquidators of the IBRC in maximising the return on IBRC’S portfolio, with €35 million having been returned to the exchequer in December 2023 and further realisations to come.

“At the time of the publication of the 10th progress update report in 2023, the remaining loan book had a par value of €3.6 billion.

“NAMA, which was established 15 years ago this December, has been cited internationally as one of the best examples of a successful implementation of a State-backed asset management company in response to the global financial crisis.

“NAMA inherited a multi-jurisdictional loan book with a par value of €74 billion comprising 60,000 properties and 5,000 individual borrowers. It fully repaid all €32 billion in debt issued to acquire loans and has been fully self-financing throughout its lifetime.

“It has made an important social and economic contribution to the development of the State, funding and delivering over 37,000 new homes to date and delivering over 3,000 social housing homes, as well as driving the regeneration of the Dublin Docklands area.

“NAMA has entered its final phase in a strong position thanks to the exceptional progress it has made in recent years. NAMA projects a lifetime surplus of €5.2 billion from its operations and I have every confidence in the NAMA staff and board to continue to deliver the best value from its remaining portfolio as it works towards conclusion by end-2025.”