NAMA to acquire loans at 47pc discount
The National Asset Management Agency has announced that it will acquire more than 1,200 property loans with a value of €16bn and said they will be bought for €8.5bn, representing an average discount of 47pc.
In a statement today NAMA said it had completed the transfer of the initial tranche of loans from Irish Nationwide Building Society and EBS Building Society on March 29.
"The agency will transfer the first batch of loans from Bank of Ireland on Friday next, April 2 and expects to complete the acquisition of the first batch of loans from the two remaining participating institutions, Allied Irish Banks and Anglo Irish Bank, by early April."
NAMA also said it expects to complete the transfer of the remaining loans from all five institutions no later than the end of February 2011, the deadline set by the EU Commission.
The agency anticipates that it will purchase €81bn of loans, it said.
Commenting on the move NAMA chairman Frank Daly said: “NAMA is a key element in resolving the difficulties of the Irish banking sector.
"Thanks to the considerable effort, dedication and skill of all involved in NAMA, the loan transfers have commenced within a month of EU approval."
The Board of NAMA’s guiding principle to date has been to safeguard the interests of taxpayers by taking a scrupulously objective view of the value of the underlying assets and the security attaching to each and every loan."
"We will remain resolutely focused on taxpayers’ interests as our work continues in the months ahead.”
Brendan McDonagh, Chief Executive of NAMA said: “Our sole focus at NAMA is to bring proper and disciplined management to these loans and borrowers with the aim of achieving the best possible return and to protect the interests of the taxpayer."
"We will assess each borrower’s viability rigorously over the coming months as part of the business plan review process which will be a new start for all the parties involved."
"NAMA is willing to engage with an open mind to our acquired clients but I wish to reiterate that we require full disclosure of all material information and we will not waste time with borrowers who do not wish to cooperate.”
Mr McDonagh also said that borrowers whose loans have been acquired by NAMA will be required to submit a comprehensive business plan in accordance with NAMA’s template within one month outlining how they propose to honour their loan commitments.
Where these plans are approved by NAMA, it will monitor the borrower’s subsequent performance to ensure they adhere to the targets contained in the approved business plans.
Where these plans are not approved or not received, NAMA will take whatever actions it considers necessary to protect the interests of the taxpayer.