Nama has paid off the last of the €31.8bn of debt it took on a decade ago to fund its share of the bank bailout. A final €1.064bn payment has redeemed the bad-bank’s so called subordinated, or junior debt.
Nama had already paid back €30.2bn of so called senior debt by 2017, three years ahead of schedule, and removing a potential liability that would otherwise have fallen on taxpayers.
Nama CEO Brendan McDonagh said it clears the way for the agency to hand €2bn to taxpayers this year.
“The full repayment of our subordinated debt represents another significant milestone for NAMA, particularly as it paves the way for the Agency to commence the transfer of the first €2bn of its surplus to the Exchequer later this year. NAMA is now in a position to make a meaningful and tangible return of €4bn to the State – a return that was not considered feasible a decade ago.”
The National Asset Management Agency (Nama) was set up to take over more than €70bn of boom era property and developer loans as part of a bid to get banks back lending after the financial crisis.
Nama paid less than 50 cents in the euro for the loans, with bailed-out banks nursing the loss.
The agency was then charged with clawing back value from the loans, which was achieved in many cases by selling the loans on to vulture funds.