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BoI's NAMA loans rise to 44pc discount

THE discount applied to Bank of Ireland's Nama-bound loans significantly deteriorated towards the end of last year, figures released yesterday revealed.

The €3.75bn pile of loans Bank of Ireland transferred to Nama as part of the toxic loans agency's first two 'tranches' attracted discounts of just 36pc, the lowest discounts of any bank.

In a statement issued in November, the Central Bank said it expected Bank of Ireland's remaining transfers to attract a discount of "up to 42pc".

Yesterday, Bank of Ireland said that the overall discount on the €9.4bn of loans transferred last year had come in at 44pc, suggesting a discount of 48pc on transfers after November.

The bank acknowledged that the actual discount "exceeded" the November projections, but said it expected lower discounts on a residual €900m pile of big loans that had yet to be transferred.

The €900m is understood to be made up of high-quality debts where the borrower and/or the bank is disputing the appropriateness of a Nama transfer.

Bank of Ireland also has €4.1bn of smaller loans, worth less than €20m apiece, to transfer to Nama. The bank said the discount level on these had yet to be determined.

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