EU clears NAMA transfer
The Commission said the transfer was “in line with the approved scheme and with its guidance on the treatment of impaired assets”.
“In particular, the transfer satisfied predefined transparency and disclosure requirements, the assets fulfil the criteria for participation in the scheme and their valuation complies with the requirements of the Commission's guidance and results in adequate burden sharing,” it said.
The Commission said it also continues to rely on the commitments of the Irish authorities to ensure that NAMA does not lead to undue distortions of competition.
“The Commission has therefore concluded that the transfer of the first tranche of assets to NAMA represents an appropriate means of remedying a serious disturbance in the Irish economy and as such is compatible with Article 107(3)(b) of the EU Treaty.”
Meanwhile Credit Suisse Group AG has said NAMA is unlikely to receive full repayment for the pure development real estate loans it is buying from the country’s lenders
“There is simply too much development and too much unoccupied property for even more new property to generate yields,” said Credit Suisse analyst Niall O’Connor in a note yesterday. “For the development loans — defined as land and land with construction less than 30 percent complete — it is hard for us to see how even a protracted period of restructuring would allow repayment.”
In all, the so-called bad bank is buying €81 billion of loans from five lenders at a discount. NAMA is buying both development and investment real-estate loans.
