Government ‘satisfied’ Nama debts are off balance sheet

The Government is “satisfied” that Nama’s debts will not be brought onto the Government’s balance sheet, according to a Finance Ministry spokeswoman.

Eurostat, the EU statistics office, allowed the State to keep Nama off the balance sheet after it sold a 51% stake in a so-called Nama special purpose vehicle in 2010 to a group of private investors, including Irish Life Investment Managers — a unit of Irish Life Assurance.

Eurostat is now querying whether the arrangement can continue, as the State is taking 100% control of Irish life Assurance, according to a newspaper report yesterday.

“There has been ongoing engagement with Eurostat over recent months relating to the proposed sale of Irish Life,” the Department of Finance said in an e-mailed statement.

The ministry “is satisfied that this matter will not result in Nama being brought onto the government balance sheet.”

Eurostat said that it is discussing many issues with EU member state statistical offices, as part of a clarification of the Apr 2012 reporting for the Excessive Deficit Procedure.

Among these issues is the recording of government support to financial institutions in several member states, including Ireland.

Eurostat will publish the deficit and debt data for the years 2008 to 2011 on Apr 23 and will not comment on the Irish deficit and debt data until then.

— Bloomberg