How it works
Published 04/02/2010 | 05:00
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.