Nama on track to wind down by end of 2025 as Finance Minister recommends new resolution unit

Minister McGrath said the new unit will take care of residual activity from the liquation of the former Anglo Irish Bank

Pictured Minister for Finance, Michael McGrath TD speakING to the media following publication of Section 227 5-year review of NAMA, which covers the period 2019-2023. Photo: Sam Boal/Collins Photos

The National Assets Management Agency (Nama) is on target to conclude its work by the end of 2025, with Finance Minister, Michael McGrath recommending a resolution unit to be established to manage any outstanding activity from 2026 onwards.

The Minister confirmed that new legislation will be needed to establish this unit, which will also take care of any residual activity from the special liquidation of IBRC, the former Anglo-Irish Bank. 

Publishing its third and final review of the agency on Wednesday, the Department of Finance noted the more than €10.5bn to be delivered to the State, combining NAMA's projected surplus of €4.9bn with recouping the €5.6bn State Aid element of what it paid for the loans acquired from the participating institutions.

"Nama has made extensive progress in achieving its overall objectives," said Mr McGrath. "This strong commercial performance has exceeded expectations and Nama’s success has been augmented by the Agency’s considerable achievements in relation to its supplemental objectives."

The review also noted the potential of unresolved litigation by the end of next year, and some remaining assets which still have value for the State. It added that it "currently assumed that loans c.€25m could still be the subject of ongoing litigation by end-2025."

"The litigation will likely involve both Irish and foreign court jurisdictions and its resolution will be largely outside the control of Nama,” the review continued. 

By the end of 2023, Nama had generated €47.7bn cash from its acquired portfolio. The report noted that the Agency has "consistently generated profits since 2011" and has transferred a cumulative total of €4.25bn to the Exchequer, comprising €3.85bn from its lifetime surplus and over €400m corporation tax payments. 

The Nama Board projects that it will generate a lifetime return of at least €4.9bn by the end of 2025

The review also said the agency had "largely exiled" its exposure from foreign jurisdictions, with only 1% of its remaining portfolio located outside of Ireland by the end of 2023. The majority of its remaining assets are in Dublin, with the portfolio comprised largely of residential development sites.