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Thursday February 04 2010
- Banks carry out initial valuations on tranches of loans to be transferred, under strict guidelines, from NAMA.
- NAMA's panel of legal firms carry out legal due diligence on loans.
- NAMA's panel of property valuation firms audit and review the banks' estimates.
- NAMA can adjust the value of certain loans from their market value.
- Banks can appeal valuations to a 12-member panel, but they must then accept only market-value prices.
- Banks receive government-guaranteed bonds for their loans, reflecting discounts applied.
- These bonds can be cashed in with the European Central Bank or the open market to boost their liquidity and help restore credit to the economy.
Irish Independent
