Irish

Thursday 24 July 2014

NAMA has paid off a further €1.15bn of IBRC debt

Published 06/06/2014|02:30

  • Share
NAMA
NAMA

NAMA has paid a further €1.15bn to the Central Bank to settle debts originally owed by the bust former Anglo Irish Bank.

  • Share
  • Go To

Last year the National Asset Management Agency (NAMA) "bought" a €12.93bn charge, or mortgage, over the assets of IBRC – the former Anglo Irish Bank that was previously held by the Central Bank as security for emergency loans to the bank.

The deal was part of the wider scheme to scrap the notorious Anglo Irish Bank "promissory note", with the sale following the appointment of a special liquidator to IBRC, the renamed Anglo.

NAMA handed the Central Bank €12.93bn in Government guaranteed senior bonds so that it was not left out of pocket by the deal.

For NAMA the charge over the IBRC assets means it is first in line to be repaid from proceeds of the liquidation of that bank. It then uses the cash to redeem or buy back the bonds held by the Central Bank. The cash is then taken out of circulation – torn up – by the Central Bank.

The latest redemption means €1.853bn of the original is left to be repaid. The liquidators of IBRC have said that the sell off of assets will fully cover NAMA's debt to the Central Bank, with an as yet unknown amount left over to part repay unsecured creditors – including the Government.

Since they were appointed in February last year the special liquidators Kieran Wallace and Eamonn Richardson have liquidated the bulk of IBRC's portfolio of loan assets which had a notional or face value of €22bn.

Irish Independent

Read More

Classifieds

CarsIreland

Independent Shopping.ie

Meet, chat and connect with
singles in your area

Independent Shopping.ie

Meet Singles Now

Findajob

Apps

Now available on

Editors Choice

Also in Business