Group	2014 €’000	2013 €’000
Interest on loans and receivables - NAMA	844,984	1,058,032
NARL	72,849	201,291
	917,833	1,259,323
Interest on acquired derivative financial instruments	24,402	50,422
Interest on cash and cash equivalents	5,716	13,129
Interest on available for sale financial assets	44	5,928
Interest on working capital loan to joint Special Liquidators	-	872
Total interest income	947,995	1,329,674
Fee income from loans and receivables	7,294	5,042
Total interest and fee income	955,289	1,334,716

Interest income on loans and receivables is recognised in accordance with accounting policy 2.9.

Interest income on loans and receivables is calculated using the EIR method of accounting. This method seeks to recognise interest income at a constant rate over the life of the loan and will differ from actual cash received. This implies that in any given reporting period the amount of interest recognised will differ from the cash received. However, over the life of the loan, the total cash received in excess of the acquisition value of the loan will, following adjustment for any impairment loss recognised, equal the interest income recognised. No interest income is recognised on the element of any loan balance which is considered to be impaired.

Interest on loans and receivables recognised for the year was €0.92bn (2013: €1.26bn) and of this, €0.84bn (2013: €1.06bn) relates to the NAMA group excluding NARL (in Voluntary Liquidation). Of this amount €0.72bn (85%) was realised in non-disposal cash receipts (2013: €0.9bn; 87%). Any difference between the EIR income recognised and the element realised in cash in any particular period is factored into NAMA’s impairment process.

NARL (in Voluntary Liquidation) was established on 11 February 2013 in response to a Direction issued by the Minister for Finance under the Irish Bank Resolution Corporation Act 2013 to NAMA to acquire a loan facility deed and floating charge over certain IBRC assets which were used as collateral by IBRC as part of its funding arrangements with the Central Bank of Ireland. In March 2013 NAMA acquired the loan facility deed and floating charge at a value of €12.9bn. Interest on this loan accrued at the ECB Marginal Lending Rate plus a fixed margin of 1%. The average interest rate on the facility in 2014 was 1.58%.

The principal balance of the loan facility deed was repaid by the joint Special Liquidators during 2013 and 2014 from sale proceeds of the liquidation of IBRC. The loan facility deed was repaid in full by the joint Special Liquidators in October 2014.

Following the full settlement of the loan facility and the redemption of all senior bonds issued by NAML to the Central Bank of Ireland as consideration for the loan facility deed, NARL (in Voluntary Liquidation) was no longer deemed necessary as it had fulfilled its purpose and was placed into voluntary liquidation by its members on 18 December 2014.

Up to the date of the liquidation, NARL (in Voluntary Liquidation) had generated €73m (2013: €201m) in interest income on the loan facility deed.

Interest income on acquired derivative financial instruments relates to interest receivable on derivatives acquired from Participating Institutions that were associated with loans acquired.

Interest on cash and cash equivalents comprises interest earned on cash, short-term deposits and exchequer notes held during the year.

Interest on available for sale assets comprises interest earned on short term government bonds held for liquidity purposes. Refer to Note 16 for further detail on available for sale assets.

Fee income from loans and receivables includes fee income from borrowers that is an integral part of calculating the EIR or originating a loan and is recognised as part of EIR as described in accounting policy 2.9. Fees earned by the Group that are not part of EIR, such as exit or performance fees, are recognised immediately in profit or loss as fee income. Fee income recognised in the year includes arrangement fees and restructuring fees.

Agency	2014 €’000	2013 €’000
Interest on loan to NAML	165,717	-
Interest on loan to joint Special Liquidators	-	872
Interest income on cash	1	2
Total interest income	165,718	874

In 2014, NAMA Group subsidiaries generated taxable profits, which is ultimately payable to NAML as interest income under profit participating loan agreements in place. Subsequently, after utilisation of any available tax losses and the deduction of interest expense on its senior and subordinated debt securities, NAML generated taxable profits of €166m which is payable to NAMA the Agency, as interest income. This amount payable by NAML to NAMA the Agency is subordinated to senior creditors after all senior debt is repaid.

In 2013, in response to a Ministerial direction, NAMA and the joint Special Liquidators of IBRC entered into a loan facility, with a maximum drawdown of €1bn. The purpose of the facility was to provide the joint Special Liquidators with working capital and cash collateral to post to derivative counterparties of IBRC. The loan was repaid in full by 31 December 2013. Interest charged by NAMA on this loan in 2013 was 1.4% per annum totalling €872,000.