Weekend media reports suggested that developers whose debts are being taken over by NAMA at huge cost to the taxpayer will be allowed to pay themselves up to €200,000 a year under so called 'work-out' arrangements with the agency.

A statement from the National Asset Management Agency today said that the agency is currently reviewing business plans for the largest 30 borrowers with indebtedness of €27 billion.

It said that as part of the debtor business plan process, NAMA has typically required borrowers to reduce the overheads of their businesses by between 50% and 75% from those unsustainable levels.

'These reduced overheads have to cover a broad array of expenses including salaries for relevant executives. NAMA does not specify any individuals salary,' the statement said.