Bank of Ireland and AIB to get €28.2bn from NAMA
Bank of Ireland said it would get €11.2bn for the loans it's selling to NAMA. Photo: Bloomberg News
Monday November 30 2009
Bank of Ireland and Allied Irish Banks may receive a combined €28.2bn for the toxic property loans they are selling to the National Asset Management Agency (NAMA).
Bank of Ireland would get €11.2bn for the loans it’s selling to NAMA, the lender said in a statement today.
That figure is based on the Government applying a 30pc discount to assets NAMA plans to buy, the bank said. Allied Irish Banks said today it may receive €17bn based on the same discount.
The Government plans to rid the country’s lenders of toxic property assets by buying about €77bn of loans.
The purchases will be made at an average discount of 30pc to reflect the decline in property values. The Government estimates that property prices in Ireland have fallen by half since peaking in 2007.
Bank of Ireland and Allied Irish Banks recommended that investors back their participation in NAMA. Bank of Ireland will hold a shareholders’ meeting in January, while Allied Irish Banks investors will vote on December 23.
- Ian Guider
© Bloomberg
