NAMA can make a profit, says chairman Frank Daly
THERE is every prospect that the National Asset Management Agency (NAMA) will make a profit, its chairman Frank Daly has said.
But Mr Daly said he did not believe the bad bank would get the best return for the taxpayer if it had a very accelerated sale of its assets.
Finance Minister Michael Noonan has asked NAMA to weigh up the pros and cons of selling off its assets quickly.
One possibility is to have an accelerated sale over a six month period, or a sale in separate tranches over a set timeframe.
“Whether it would de-stabilse the market, I’m not sure,” Mr Daly told the Today with Sean O’Rourke programme on RTE Radio One.
“Whether we would get the best price for it, I doubt it. Right from the beginning we’ve had people knocking on our door offering us derisory prices for our assets.
“I think they are much more realistic now. Partly because we convinced them that we didn’t actually have to sell in a hurry.”
Under the NAMA Act, a review must be carried out this year into NAMA's operations.
NAMA was originally meant to have sold off all property by the end of the decade.
The NAMA review will examine how much progress has been made towards its objective of recovering as much money as possible for the taxpayers from the loans it has acquired. Mr Noonan has said no decisions have yet been made on whether to accelerate the speed of the sale.
Mr Daly also said NAMA is committed to providing 4,500 houses in Dublin by 2016, funding debtors to build the homes with the aim of developing the bulk of those this year and next.
He said it also has control over land or sites that could potentially deliver another 20,000 houses.
“We think they have the potential to deliver 20,000 houses,” he said.