Bad bank's board to revise its business plan
NAMA's new board intends to draft a new business plan by the end of June after it has taken over the first two batches of risky property loans from banks.
This comes after changes to key elements to the draft plan, which was unveiled in October.
It emerged yesterday that repayments are only being made on 33pc of the €81bn of risky property loans going into NAMA -- down from 40pc estimated in the original plan.
And the average discount applied to the first tranche -- now expected be between 47pc and 50pc -- is much deeper than the first document's 30pc.
NAMA chief executive Brendan McDonagh would not say yesterday whether the bad bank would be sticking by its original estimate of only 20pc of borrowers defaulting over the agency's lifespan.
The October document also outlined the prospect of taxpayers making a €5bn profit on the massive project over the course of the next decade.
"A revised business plan will be submitted to the minister and published by the end of June," said Mr McDonagh. "We have to go through a governance procedure with nine people on the board. The board will have to buy into the plan."
In the meantime, first-year costs relating to legal due diligence and other services of NAMA are now expected to come to about €100m, down almost 40pc from the initial estimate.
Mr McDonagh said this was due to "keen competition" among firms vying for contracts. The cost is actually borne by the banks participating in NAMA.