NAMA repays €2bn bond to banks as part of bailout deal
THE National Asset Management Agency (NAMA) said yesterday it had repaid €2bn of a bond to a number of Irish banks, as part of a plan agreed under the terms of the EU/IMF bailout.
When it was set up in 2009, NAMA borrowed €32bn from the Irish banks by issuing a so-called NAMA bond. It then used those funds to buy billions of toxic loans from the banks themselves.
Yesterday's repayment continues a strategy that has seen borrowing worth €3.25bn repaid in the last two years. The 'bad bank' is required to repay €7.5bn of senior debt by the end of 2013 under the terms of Ireland's bailout.
In a statement yesterday, NAMA said the redemption was the fourth repayment of NAMA bonds (senior securities) to date.
"In addition to repayments in 2010 and 2011 of €299m in advances made to NAMA by the Finance Minister, this means that NAMA has reduced its indebtedness by over €3.5bn over the past two years," the agency said.
Speaking yesterday, NAMA chairman Frank Daly said the agency's strong cash position meant that additional debt repayments were likely before the end of the year and that NAMA was well placed to meet its repayment targets.