Thursday 19 October 2017

NAMA writes off €956m in debt owed by over 500 debtors

Photo: Reuters
Photo: Reuters

Gordon Deegan

The National Asset Management Agency (Nama) has written off €956m in debt owed by 505 debtors who have exited it.

That is according to Minister for Finance Michael Noonan, who said that the €956m written off represents less than 4pc of the original par debt of €27.24bn acquired by Nama relating to the 505 debtors.

"Debt is written off only in cases where all of a debtor's underlying assets have been realised and there is no further recourse available to Nama to recover borrowings from the debtor - that is, when all avenues to recover borrowings have been exhausted," he said.

"It is important to note that not all debt includes personal guarantees or has personal recourse and that recourse can be limited to the value of the assets which in many cases is lower than the outstanding amount borrowed."

The 505 debtors originally owed €27.3bn to various banks and 377 debtors have paid off less than 50pc of their original bank debt.

Commenting on the write-down of debt by Nama, Sinn Féin TD Pearse Doherty said: "These figures again throw into question the Nama strategy of selling off early when managing the loans for the Irish people over a longer period may have been more profitable. The politically driven rush to sell has served the vultures well but not the Irish people."

Ninety-two debtors, who repaid between 10pc of 5pc of their par debt of €3bn had €22m of debt written off by Nama.

Thirty-one debtors who repaid between 50pc and 40pc of their €2.6bn debt had €210m in debts written off.

Irish Independent

Also in Business