Rise in number of bankrupt Nama debtors

The numbers of Nama debtors declaring themselves bankrupt has climbed by 37.5% in the past year, new figures show.

According to Finance Minister Michael Noonan, a total of 77 Nama debtors have now declared themselves bankrupt.

This compares to 56 owing the agency a total of €8bn in June of last year — a rise of 21 in 12 months.

In a written Dáil response to Fianna Fáil’s Michael McGrath, Mr Noonan stated that 12 have been declared bankrupt in Ireland, 63 in Britain and the North, and two in the US.

Mr Noonan said that “Nama is aware of 44 debtors being discharged from bankruptcy in Britain and Northern Ireland.

Nama is currently not aware of any debtors being discharged from bankruptcy in Ireland or the USA”.

The more favourable bankruptcy regime in the UK where debtors can exit bankruptcy after one year has resulted in 82% of the Nama bankrupts declaring themselves bankrupt in the UK.

Some of those developers to exit bankruptcy in the UK include developers, Bernard McNamara and Ray Grehan.

In a previous Dáil question on the issue, Mr Noonan pointed out: “The agency, as a secured creditor, is generally neutral on the locus of bankruptcy proceedings and its experience has been that the location has not tended to prejudice recoveries.

Separately, Mr Noonan confirmed that the numbers of Nama debtors receiving a salary last year declined from 168 to 134.

The total amount paid out in salaries to Nama debtors last year was €10.9m. In 2012, the salaries were €15.49.

Mr Noonan confirmed that three debtors who manage multi-billion euro business had each retained an income of €200,000.

There were also 15 with an income of between €150,000 and €199,000; 36 retained an income of between €100,000 and €149,000; 50 retained an income of between €50,000 and €99,000 and 30 further debtors who retained an income of up to €49,000.