NAMA is to repay a further €1.5 billion of borrowings which will bring the total amount of debt it has redeemed to €6.25 billion.

The National Asset Management Agency says it is on target to pay off a quarter of its borrowings by the end of the year.

NAMA reported a profit after impairment, tax and dividends of €228m for 2012, which was slightly down on the €241m reported a year earlier.

The agency was set up to buy land and development loans from Irish banks to relieve them of their distressed assets.

NAMA's annual report shows it completed sales of assets of €7.9 billion. It has also identified 4,000 residential properties for social housing use.

It is currently preparing to take over IBRC's loan book after the bank was liquidated earlier this year.

The report also shows that NAMA CEO Brendan McDonagh was paid €365,500 last year.

His pay was reduced by 15% from €430,000 after he took a voluntary reduction.

The 2012 annual report says Mr McDonagh was entitled to a performance related bonus of up to 60% of his salary.

But it adds "in view of the economic challenges facing the country" he waived his entitlement to this payment.

Mr McDonagh said 2012 was a year of "substantial progress".

While its chairman Frank Daly said he is confident the agency will repay a quarter of its borrowings by the end of the year.

Speaking on RTÉ's News at One, Mr Daly also said he was confident that NAMA would meet its overall target of paying back all of its senior debt by 2020.

Mr Daly said that while a third of debtors are not co-operating with the agency, this reflects the number of debtors, rather than the value of their loans.

Mr Daly added that the level of co-operation was higher than he would have expected two years ago.