Business Irish

Friday 19 September 2014

NAMA puts contract to manage Anglo loans back out for tender

Published 21/01/2014 | 02:30

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The former headquarters of Anglo Irish Bank
The former headquarters of Anglo Irish Bank

NAMA says the contract to manage loans it will take over once the shutdown of the former Anglo Irish Bank is completed is being put back out to tender.

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In July last year NAMA named Certus as the preferred bidder to take over management of what was expected to be a portfolio of as much as €22bn in face value, or loans.

At the time Certus said it would hire 300 additional staff to deal with the extra workload.

However, last night NAMA said it was putting the contract back out to tender because it no longer expected to take on such a large volume of new loans.

Under the terms of the liquidation of IBRC, the former Anglo Irish Bank, any loans not sold elsewhere will be transferred to NAMA when the year- long shutdown of the bank has been completed.

NAMA said the contract was being put back out to tender because the special liquidators appointed to close down IBRC were set to sell off more assets than NAMA initially expected.

"NAMA has been advised by the special liquidators that the volume of commercial property loans transferring to NAMA could now be substantially less than initially envisaged," the agency said in a statement.

The borrowers whose commercial property loans eventually do transfer are also expected to include a high proportion of smaller "exposures", or total debts, NAMA said.

As a result of the change NAMA is launching a new tender process for the contract today.

Irish Independent

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