Nama Cost Benefit Analyses, Impact Reports Or Preparatory Reports

An Roinn Airgeadais Department of Finance

Sraid Mhuirfean Uacht, Baile Atha Cliath 2, Eire -

Upper Merrion Street, Teileafon / Telephone: 353-1 676 7571 Dublin 2, Facsuimhir/ Facsimile: 353-1 678 9936 Ireland. Glao Aitiuil / LoCall: 1890661010 http://www.irlgov.ie/finance

Ref: FOI 200/2009 4 December 2009 Mr. Gavin Sheridan 21 The Courtyard Castleredmond Midleton Co. Cork Dear Mr. Sheridan I refer to the request which you made under the Freedom of Information Acts 1997 and 2003 for records held by this Department: 1. The titles, dates and authors of all cost-benefit analyses, impact reports or preparatory reports that have been carried out by the Department in relation toNAMA.. 2. The titles, dates and authors of all cost-benefit analyses, impact reports or preparatory reports that have been carried out by people or companies working on behalf of, or at the request, of the Department, in relation to NAMA. At the outset I want to express my regret at the time it has taken to bring this matter to this stage, but I'm sure you will appreciate that those of us in this area of work in the Department have been very heavily engaged in dealing with the exceptional issues

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that have had to be dealt with in relation to banking and financial matters, the preparation of the NAMA legislation over the past number of months and also the substantial number of Freedom of Information requests received in this area. I have made a final decision to grant your request on 4 December 2009. If you have any queries regarding this correspondence you can contact me by telephone at 631 8129 or by email at [email protected]. The purpose of this letter is to explain that decision. This explanation has the following parts: 1. a schedule of all of the records covered by your request; 2. access arrangements. This letter addresses each of these parts in turn. 1. Schedule of records A schedule is attached at the end of this letter. It shows the documents that this Department considers relevant to your request. 2. Access Arrangements You have sought access to the records by means of photocopies and I consider this an appropriate form of access in this case. In addition to the titles of reports listed in the attached schedule, you may wish to note the following. You request details of analysis carried out by the Department. Such analysis is carried out on an ongoing basis by the Department and reported regularly to the Minister in both verbal and written format. Such reporting would not be possible to list separately and would often be building on the reports listed in the schedule. Arthur Cox solicitors have been engaged by the Department of Finance since September 2008 to provide advice in relation to general banking matters including

the Bank Guarantee scheme, the nationalisation of Anglo Irish Bank and the recapitalisation of AIB, Bank of Ireland and Anglo Irish Bank. PriceWaterhouseCoopers was retained by the Financial Regulator in late 2008 to assist the Financial Regulator with a review of the financial and capital positions of Irish banks and to enable the Financial Regulator to advise the Government on what action needed to be taken. The work undertaken involved an initial high level assessment of the capital and liquidity levels of the institutions, stress testing of the institution's loan portfolios over a three year period, and review the valuation of properties held as collateral against the main property loans. In addition, the Financial Regulator engaged Jones Lang LaSalle for financial and property consultancy services in relation to the Bank Guarantee Scheme. The National Treasury Management Agency engaged Merrill Lynch for investment banking advice up to 30 June 2009. In addition, the NTMA has also retained an economist. In the setting up of NAMA, the NTMA issued a number of tenders in May 2009 through the procurement website www. etenders. gov.ie to procure banking/financial advisory and legal advisors. Arthur Cox was awarded the legal mandate and HSBC were awarded the banking\advisory mandate. In July 2009, the NTMA issued a tender to procure general banking advisors in relation to the whole financial system through the procurement website www.etenders.gov.ie and Rothschilds were awarded this mandate to 30 June 2010.

Yours sincerely

\ y Aidan Carri

Principal (Sffficer

FOI Request Reference: 200/2009 Schedule of Records: Summary of Decision Making: Record No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Brief Description & Date of Record: Title of Document Merrill Lynch Presentation to NTMA. Discussion Materials. 30 October 2008. Price WaterhouseCoopers Report. Project Atlas II - Island. Working Draft. 31 October 2008. Price WaterhouseCoopers Report. Project Atlas II -Eagle. Working Draft. 5 November 2008. Price WaterhouseCoopers Report. Project Atlas II. Working Draft. 5 November 2008. Price WaterhouseCoopers Report. Project Atlas II -Able. Working Draft. 7 November 2008. Price WaterhouseCoopers Report. Project Atlas II -Volume 4. Working Draft. 7 November 2008. Price WaterhouseCoopers Report. Project Atlas II -Canal (Volume 7). Draft. 10 November 2008. Price WaterhouseCoopers Report. Project Atlas II Volume 1. Overview Working Draft: 11 November 2008. Price WaterhouseCoopers Report. Project Atlas II Volume 1. Overview Working Draft: 17 November 2008. Merrill Lynch. Presentation to Irish Department of Finance Discussion Materials. 18 November 2008. Merrill Lynch. Presentation to Irish Department of Finance Discussion Materials. 24 November 2008. Merrill Lynch. Presentation to Irish Department of Finance Discussion Materials. 17 December 2008. PwC Response to Department of Finance Queries regarding PwC Draft Property Values Review -dated 9 January 2009. Price WaterhouseCoopers: Project Atlas. Draft Property Values Review. 9 January 2009. Price WaterhouseCoopers: Project Atlas. Draft Property Values Review. 9 January 2009. Price WaterhouseCoopers: Project Atlas. Draft Property Values Review. 9 January 2009. Price WaterhouseCoopers. Project First Loss. Draft Discussion Paper. 30 January 2009. Price WaterhouseCoopers. Project Atlas. Draft Property Values Review. 4 February 2009. Barclays Capital Financial Institutions Group. Impact of the banking crisis on the NTMA. Considerations, assessment and recommendations. February 2009. Price WaterhouseCoopers. Project Atlas. Summary Report Extracts. 20 February 2009. Strategic Options Paper. Prepared by the Department of Finance and Arthur Cox 5 March 2009. Merrill Lynch. Project Atlas. Indicative Risk Transfer Structure. 6 March 2009.

23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43

Internal D/Finance draft document. Creation of a National Asset Management Agency. Preliminary Assessment by Merrill Lynch. 7 March 2009. Arthur Cox Report. First Draft. Sunday 8 March 2009. Strategic Plan for the Structural Implementation of the NAMA Initiative. Merrill Lynch. National Asset Management Agency - Introduction. Presentation of 1 1 March 2009. Merrill Lynch. Presentation to NTMA. Real Estate Market Update. March 2009. Rothschild. Responding to the financial crisis. Developing a policy framework. 12 March 2009. Arthur Cox document: Strategy Paper for NAMA Implementation. March 2009. Peter Bacon & Associates Economic Consultants. "A Bad Bank, Solution to the Irish Banking Crisis: How it would Reduce if not Avoid Further Exchequer Exposure." 20 March 2009 Report of Special Advisor at NTMA. Evaluation of Options for Resolving Property Loan Impairments and Associated Capital Adequacy of Irish Credit Institutions. 20 March 2009. Internal D/Finance document: Bacon Report: State aid aspects. Arthur Cox document. Initial Draft for Discussion Purposes. National Asset Management Agency. Primary Legal Decision Points. 6 April 2009. Jones Lang LaSalle Report. Section 1 - Atlas. To evaluate the valuation methodology and comment on the robustness of the approach. Memorandum from Arthur Cox Solicitors. Subject: NAMA - Transfer of non-Irish Assets. 27 April 2009. Memorandum from Arthur Cox Solicitors. Subject: NAMA Proposal - Transfer of Assets. 30 April 2009. Memorandum for the Minister for Finance and the Attorney General. NAMA Steering Group of NAMA Policy Issues. 4 June 2009. HSBC. Project Neo. Heads of Bill (draft received 19 June 2009). HSBC comments. Price WaterhouseCoopers. Project Parade. Review of Loan Loss Impairments. Working draft for information purposes. 8 July 2009. HSBC. Proposed Approach to defining Eligibility Criteria in the context of NAMA. 13 July 2009. Rothschild: Strategic options for sectoral restructuring, post-NAMA. 24 August 2009. Rothschild: NAMA - Further implementation considerations. August 2009 Rothschild: NAMA - capital impact analysis. 30 August 2009. Price WaterhousCoopers: Summary Findings.

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Rothschild. Discussion materials. Draft for discussion. 12 September 2009. Arthur Cox document: Term Sheet post European Commission comments. November 2009.