Just one in five loans at NAMA is performing
Published 01/02/2012 | 05:00
State's toxic debt agency attempting to manage €18.8bn worth of loans now in arrears
JUST one in five of NAMA's loans is performing, NAMA admitted yesterday, with the agency trying to manage €18.8bn worth of loans now in arrears.
The agency's latest quarterly report shows that 83pc of the non-performing loans are four months in arrears.
NAMA is now faced with either restructuring these loans or moving against developers through the courts.
In June, 23pc of the bad bank's loans were performing but the figure had dropped to 21pc by the end of September.
The value of the loans which are not performing were listed as being originally worth €56.1bn by banks before they were transferred to NAMA. The agency now values the loans at €18.8bn
NAMA chairman Frank Daly and chief executive Brendan McDonagh said the number of non-performing loans was likely to continue rising.
"It should be noted that as NAMA disposes of income generating assets, the performance of the loan portfolio may deteriorate," the two men warn in the report which must be submitted to the Dail every three months.
Yesterday's report stated that by the end of last September, NAMA had approved €5.8bn of asset sales and had received €2.5bn of those proceeds at that time. In the third quarter of 2011 it also took in €1.8bn from borrowers and repaid €500m in debt.
NAMA has approved the sale of assets worth around €6.6bn although 80pc of the sales were linked to assets outside Ireland.
Mr McDonagh said back in December that the property company expected to make a trading or operating profit of €600m in 2011 although he admitted that write-downs on property values would lead to a bad debt charge which would lead to net loss. The agency recorded a net loss of €1.1bn in 2010.
NAMA said yesterday that it made a €317m "trading profit" in the three months to the end of September and that its cumulative profit for the first nine months of 2011 was €526m.
NAMA is on track to pay down €7.5bn, or 25pc of its debts, by the end of 2013, it added.
The accounts also show that NAMA advanced a further €71m to debtors in the third quarter of 2011 for either working capital requirements or to complete existing projects.
That came on top of €75m paid to debtors in the previous quarter. A total of €873m in working and development capital had been approved by the agency by the end of September. Only half of this -- €477m has actually been drawn down.
NAMA added that it was "actively exploring" avenues to stimulate activity in the commercial and residential property markets.
It said that it should be in a position to launch a new residential mortgage scheme sometime in the next couple of months. The scheme requires approval from Brussels.
NAMA has previously indicated that it wants to offer a type of deferred mortgage, where possible future falls in property values are offset by a reducing loan amount.
It also said that Deloitte had now been appointed sole receiver over an array of companies in the Liam Carroll group. Four receivers had been looking after all of Mr Carroll's interests.
Meanwhile, NAMA yesterday moved to take control of another 40 properties and sites in December although none have been put on the market yet.
Ireland's bad bank has appointed receivers to properties in Donegal, Dublin, Kerry, Wexford and Wicklow. These include the Gallery Quay apartment complex in Dublin's Grand Canal Dock, a number of holiday homes in Kerry as well as a number of sites for development at Clonattin in Wexford.
Also in Wexford it has taken over units at Abbey Court and agricultural land in Arklow and Avoca in Wicklow.