Fears grow that transfer of €19bn in loans to NAMA could be delayed

FEARS are growing that the first transfer of loans worth an estimated €19 billion to NAMA will not take place on February 12 as intended.

Delays in approving the plan at European Commission (EC) level and a number of objections to the Government rescue plan to save the Irish banks from collapse have raised serious doubts about the time frame.

Up to €77bn in property and land loans are to transfer under the rescue plan with the Government due to hand over a total of €54bn for the loans representing a 30% discount.

With some property in south Dublin being marked down to 15c in the euro fears are growing that the taxpayer could be lumbered with massive debt for generations as the loans turn out worthless.

One report said Bank of Ireland has objected to 40% of the valuations undertaken in recent weeks while Fine Gael senator Eugene Regan has formally complained to the Commission about the current NAMA proposals.

Mr Regan, a former EU official, confirmed to RTÉ news yesterday he hasobjected formally to the plan in its current form.

The submission “in its present form doesn’t comply with EU rules and guidelines and I’ve met with the commission on that basis”, he said.

Sources close to the EC have also indicated that it was unlikely toapprove the rescue plan until the end of February at the earliest.

Mr Regan noted that the ECB gave an opinion on the bank last summer pointing out the need for vigilance on pricing the assets transferring across to the bank and expressed concerns that the these “wouldn’t be over priced”, said Mr Regan.

Delays in NAMA’s implementation could damage the capital raising required by Bank of Ireland and AIB, which need to raise an estimated €9bn between them to boost their depleted capital bases.

Mr Regan also said the scheme should not be extended to Anglo Irish bank, now state-owned, and that performing loans should not be included in the loan transfers.