Second transfer of loans to NAMA

THE National Asset Management Agency (NAMA) has completed the second tranche of loan purchases from participating lenders; acquiring loans nominally valued at €5.2 billion for €2.7bn – a discount of 48%.

The second set of loan transfers from AIB, Bank of Ireland, Irish Nationwide Building Society and EBS brings to €20.5bn the total value of loans which have been bought by the Government’s “bad asset” division at a discounted consideration of €10.4bn.

Of the latest batch of transfers, NAMA paid AIB €1.4bn – a discount of 48.5% – for €2.73bn worth of loans. The Bank of Ireland discount was 37.8%, with €1.13bn being paid for loans with an original value of €1.82bn. The EBS discount amounted to 46.4% – €19.3m being paid for €35.9m worth of loans.

By far the largest discount came on the Irish Nationwide loans. Loans with an original value of €591m were bought by NAMA for just €163m in comparison – representing a discount of 72.4%.

NAMA said that loans from Anglo Irish Bank will be acquired “over the coming weeks” after all necessary due diligence has been received and evaluated.

Meanwhile, lawyers acting on behalf of NAMA have asked the Commercial Court to fast-track a hearing into a legal challenge brought by property developer Paddy McKillen. Mr McKillen is claiming that certain parts of the act under which NAMA operates are unconstitutional and the €80m in Bank of Ireland loans made to his companies – and now NAMA-bound – are fully performing and a transfer could be detrimental to his businesses.

The Government, meanwhile, is arguing that the claims pose a threat to NAMA – in that any perception the project is flawed could damage Ireland’s image in international markets.


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