Documents released following a Freedom of Information request show the Nama board has opted for the review of its budget and costs.
The minutes of the agency’s ‘Strategy Away Day’ meeting in March at the Herbert Park Hotel in Dublin reveal that agency’s chief financial officer Donal Rooney put forward two downsizing options. He presented a paper, as Nama continues to sell down assets.
It plans to reach major milestones by the end of this year, following an accelerated deleveraging or sell-off of debtors’ loans in 2014 and 2015. The minutes state the agency estimates the number of debtors remaining in 2017 will be around 40.
The note reads: “Accordingly, in light of the anticipated significant reduction in scale of Nama’s loan portfolio, while being cognisant of the future requirements of Residential Delivery and the Special Development Zone SDZ Docklands businesses, it was apposite to review Nama’s infrastructure and cost base.”
The minutes record that the reviews had got underway, including a strategic review of Nama’s systems and a renegotiation of loan service fees with Capita.
The minutes record that the board thought that the term “downsizing” was a misnomer for its plans.
The minutes record: “While recognising the need to downsize in pursuit of cost savings, it was imperative that adequate resources were maintained to meet the very onerous objectives in the Docklands SDZ and residential delivery business.”
That is a reference to its plans to help finance thousands of homes by the end of 2020.
It stated: “Furthermore, the resource intensive nature of the business would necessitate ‘on the ground monitoring’ of relatively disparate residential sites across the country.”
The minutes show that, following further detailed discussion, the board requested a preliminary scoping paper for the review.
It plans to have the review findings ready in September. They will incorporate any new Government requirements and State aid rulings.
The minutes show the board noted that the scale of the voluntary redundancy scheme for 2016 would be informed by the restructuring proposals.