Saturday 24 June 2017

Anglo misses NAMA deadline to transfer second tranche of loans

Anglo Irish Bank has failed to meet the deadline for the transfer of its second tranche of loans to NAMA. Photo: Bloomberg News
Anglo Irish Bank has failed to meet the deadline for the transfer of its second tranche of loans to NAMA. Photo: Bloomberg News

Maeve Dineen Business Editor

Scandal-hit Anglo Irish Bank has failed to meet the deadline for the transfer of its second tranche of loans to NAMA.

It is understood that the nationalised bank will not be able to transfer its multi-billion euro toxic loans for a least another two weeks due to a delay in processing all the information required by NAMA for each loan being transferred.

It is believed that NAMA will receive the second tranche of loans from the four remaining financial institutions -- AIB, Bank of Ireland, EBS and Irish Nationwide -- by close of business today, albeit two weeks behind schedule.

The bad bank's original deadline for receipt of these loans was early July. Almost €13bn of loans will move across to NAMA in the second tranche, with about €8bn moving in a third.

The so-called haircut, or discount, on the second tranche is due to come in at a combined 50pc. The haircut will vary widely between the institutions.

Housebuilders

The key difference in the second tranche is likely to be the appearance for the first time of some major housebuilders, many of whom have large exposures with Anglo, Irish Nationwide and other lenders.

One of the biggest loans going into NAMA is likely to be a facility extended to buy the Millennium Park development in Naas, which was bought for €300m just before the property market crashed in 2008.

Ray Grehan, who owns the former UCD veterinary site in Ballsbridge, is also a possible inclusion in the second tranche. Mr Grehan bought the site for €171.5m in 2005, setting a new record and depriving Sean Dunne of the site.

Today the site is a car park, although it does have planning permission for development.

The Bailey Brothers, who own Bovale Developments, are also possibly going to be included in the second tranche. The financial position of the firm is not known due to its unlimited status but Tom and Michael Bailey own the Charlestown shopping centre in Finglas and are in expansion mode.

Mr Dunne's main site in Dublin 4 is chiefly funded by Ulster Bank, so that loan will not be going into NAMA, but Mr Dunne has developments that have loans attached to them of more than €5m. Most notably, Mr Dunne owns parts of AIB Bankcentre in Ballsbridge.

If housebuilders have loans moved in the next tranche, Mennolly Homes, founded by Seamus Ross, would be one of the biggest. McInerney is also expected to have loans moved into the agency.

Information released recently by NAMA showed that just 25pc of their loans are performing, compared with previous estimates of 40pc.

Chairman Frank Daly said last week the agency was "extremely disappointed" that information provided to the agency by bailed-out banks had "not stood up''.

Irish Independent

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