Discounted loans ‘was Nama’s best option’

Nama approved the transaction in late 2020 that included loans on residential units, unfinished residential units, and on development lands. Picture: Sasko Lazarov/RollingNews.ie

The National Asset Management Agency (Nama) has said it took the best remaining financial decision to write down loan debts and sell residential property and a development land after an official report highlighted the unusual circumstances of intimidation ahead of the transaction.

Nama sold loans related to the assets which had a face value of €10.5m at a huge discount of over 97%, according to a report into the transaction by the Comptroller and Auditor General.

The loans were sold to a relative of the debtors, the C&AG report said.

“Nama stated that the receiver resigned with effect from May 2020, after a potential sale of 18 unfinished houses and 3.2 hectares to a local authority fell through and he could not find a sales agent to market the properties,” according to the report.

Nama approved the transaction in late 2020 that included loans on residential units, unfinished residential units, and on development lands.

The C&AG report detailed that valuers had “noted that a cash investor would be unlikely to purchase these assets and to take on potential litigation and intimidation/threats, for such a low return”.

The losses were incurred after an unnamed local authority decided not to go ahead with a plan to acquire the properties.

A spokesman for Nama said it took the best remaining financial decision to write down loan debts.

“The Nama board approved the transaction as it represented a better financial outcome than was available from alternative options at the time, and matched the gross figure previously agreed with the local authority,” he said.