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NAMA reports €714m loss as discounts average 58pc

The National Asset Management Agency has reported a loss of €714m for last year, after setting aside €1 billion to take account of a fall in the value of loans it has taken on from the banks.

It has acquired €72.3bn in loans to the end of March this year and it has paid €30.5bn for the loans – an average discount of 58pc.

In its fourth quarter report and accounts for 2010, NAMA said that by the end of last year, only 23pc of its loans were performing, or being re-paid in some form. This was down from 25pc at the end of September 2010.

NAMA said it had received just over €1 billion from borrowers by the end of last year, but had also given out €240m to allow them to complete projects and to help fund their business. It is expected that a further €3.5bn of loans will be acquired over the coming months.

NAMA also gave an update on its talks with the largest 30 debtors and said that agreement on business plans had been achieved with 16.

Agreement is close in another two case and the agency has taken action against seven borrowers, while negotiations are continuing with five.

Chairman Frank Daly said: “The opening months of 2011 have been exceptionally busy as NAMA moved from a period of intensive analysis of the position of the largest individual debtors to the next phase of the project where the focus is on identifying those we believe we can work with and moving others into the enforcement process.

"We’ve seen the results of that move in recent weeks and I expect we’ll see further decisive action in the weeks ahead.’’

Receivers were sent back in to take control of developers Ray and Danny Grehan’s assets yesterday after the property developers failed to meet a deadline for payment of €650m debt.