NAMA chief Brendan McDonagh says agency did not overpay for loans
THE head of the National Asset Management Agency today said that his agency had not overpaid for loans bought from the banks.
Brendan McDonagh told the public accounts committee the state bad bank paid “no more and no less” for the loans, and the rates had satisfied the European Commission so far.
“Given the level of assistance required by the participating institutions there would have been little point in NAMA paying less than long term economic value of loans if that meant that the resulting shortfall would have to funded from some other part of the state’s coffers,” he said.
The first tranche of loans were transferred to NAMA in November 2009 and although property prices have continued to decline since then, Mr McDonagh said the agency was in a “strong cash position” and added the agency was still on course to at least break even or turn a small profit by the time it winds down in 2020.