THE NATIONAL Asset Management Agency will insist that developers appoint non-executive directors to the boards of their companies if it feels the firms do not have sufficient expert staff to run them to ensure their debts are repaid.

The move gives Nama the power to approve the appointment of new board members to the borrowers’ companies as part of their plans to repay debt to the agency.

Nama will have the authority to sign off on the appointment of board members, giving the agency an oversight role at board level in the day-to-day running of the companies to ensure approved debt repayment plans are followed.

The agency has declined to disclose how many appointments are being made to the boards of development companies owned or controlled by borrowers who have had loans transferred to the agency.

The appointments will be made to the companies as part of the State loans agency’s approval of the business plans submitted by the developers.

Nama said it would have to be satisfied that the companies had “sufficient expertise at board and operational level” as it approved the business plans.

“This is to ensure that the debtor has the capacity to deliver on undertakings provided to Nama,” it said.

“Each proposed corporate structure will be considered on a case- by-case basis and where requisite skills are not present, Nama will insist that they be brought in.”

The agency said this may include the appointment of “qualified non-executive directors” in certain cases but that the appointments would be made by the companies themselves once Nama was satisfied with the choice of candidate.

Nama concluded its review of business plans submitted by the the top 30 borrowers last month.

It is now believed to have begun seeking the appointment of new non-executive board members to companies over recent weeks to ensure business plans are met.

Nama has acquired 11,000 loans with a face value of €71.2 billion for €30.2 billion, amounting to an average discount of 58 per cent from five participating lenders.

The loans are due from 850 borrowers. The 30 most heavily indebted debtors account for about €27 billion of the loans.

The agency is acquiring up to a further €16 billion worth of individual loans of less than €20 million owing by debtors at Allied Irish Banks and Bank of Ireland.

Nama has reversed the transfers of more than €130 million worth of assets that had been moved beyond its reach or the relevant participating bank.