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No reason to change 30pc discount valuation: NAMA

The Government's so-called bad bank is maintaining a forecast that it will pay a 30pc discount on loans it is buying from the country’s banks.

Brendan McDonagh, chief executive officer of the National Asset Management Agency (NAMA), said in Dublin today he doesn’t see a reason to change that projection and that the agency is “not surprised” by the valuations it is receiving. NAMA will pay about €54bn for the loans, it has said.

House prices are now more than 40pc below their peak in early 2007, the Irish Homebuilders Association estimates.

Any declines in property prices in Ireland since September have been offset by developments in UK land prices, McDonagh said. He also said he expects the transfer of assets to the agency to be completed in the third quarter.

AIB rose 3pc to €1.66 as of 12:20pm in Dublin. Bank of Ireland gained 1.7pc. The ISEQ stock index rose 13pc last year after losing about 94pc of its value over the previous two years.

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