National Asset Management Agency (Determination of Long-Term Economic Value of Property and Bank Assets) Regulations 2010.

• Statutory Instrument No.: 88/2010
• Published date: 05 March 2010

Notice of the making of this Statutory Instrument was published in

“Iris Oifigiúil” of 5th March, 2010.

I, BRIAN LENIHAN, Minister for Finance, in exercise of the powers conferred on me by sections 75, 76 and 79 of the National Asset Management Agency Act 2009 (No. 34 of 2009) (“the Act”), having had regard to the laws of the European Communities governing state aid and the other matters referred to section 79(2) of the Act, hereby make the following regulations:

Citation.

1. These Regulations may be cited as the National Asset Management Agency (Determination of Long-Term Economic Value of Property and Bank Assets) Regulations 2010.

Definitions.

2. (1) In these Regulations—

“class”, in relation to land, means any class of land that is differentiated by reference to any characteristic or combination of characteristics of the land, including the type of land, the purpose for which the land is used and the location of the land;

“relevant period” means the period that began on 1 January 1985 and ended on 31 December 2005.

(2) For the purposes of these Regulations—

(a) the NAMA 3-year discount rate, for bank assets denominated in euro or any other currency, is 4.54 per cent (which includes a risk margin of 1.7 per cent),

(b) the NAMA 5-year discount rate, for bank assets denominated in euro or any other currency, is 5.57 per cent (which includes a risk margin of 1.7 per cent), and

(c) the NAMA 8-year discount rate, for bank assets denominated in euro or any other currency, is 6.16 per cent (which includes a risk margin of 1.7 per cent).

Long-term economic value of property other than land.

3. The long term economic value of property other than land shall for all purposes be its market value at a date specified by NAMA.

Long-term economic value of land.

4. In determining the long term economic value of land under section 76 of the Act, NAMA shall use or apply the adjustment factor it derives by reference to such of the matters specified in Regulation 5 or 6, as the case may be, as it considers appropriate.

Land located in State.

5. (1) The adjustment factor for land located in the State shall be derived by NAMA in accordance with these Regulations in such manner as it thinks fit, by reference to such of the following as it considers relevant:

(a) the difference, as determined by NAMA, between—

(i) the prices or yields of land located in the State on the valuation date, and

(ii) the prices or yields of land located in the State over the relevant period as determined by reference to such of the bulletins and indices specified in Schedule 1 and such other similar relevant bulletins and indices as NAMA may consider appropriate in the circumstances;

(b) the correlation, in the relevant period, as determined by NAMA in accordance with paragraph (2)—

(i) between land prices and demographic variables relating to the State,

(ii) between land prices and interest rates in the State, and

(iii) between land prices and the State’s gross domestic product;

(c) projections of land prices, demographic variables, interest rates, other relevant variables and the State’s gross domestic product referable to any period or periods that end on a day or days not later than 7 years after the valuation date, which are made by the bodies mentioned in paragraph (2) and which were made available to NAMA on or after 21 December 2009 but not later than 10 January 2010; and

(d) data and analyses referred to in the following sub-subparagraphs, which were provided to NAMA by the persons specified in those sub-subparagraphs on or after 21 December 2009 but...