NAMA repays €952m in bonds issued at the height of the financial crisis
The National Asset Management Agency has repaid €952 million in bonds issued at the height of the financial crisis reducing the risk that taxpayers could be left on the hook when the agency shuts down.
Nama's amassed a €30.2bn senior debt pile as part of its effort to rescue the banks and prevent the complete collapse of the nation's financial system, which had been left on the brink by the reckless lending practices of the boom era.
The agency today announced this latest redemption which leaves the contingent liability to the state at just €500m, less than 2pc of its original level.
NAMA's chief executive officer, Brendan McDonagh claimed the reduced debt burden was a "significant achievement".
He added the agency remains on course to reduce the remaining liability by the end of the year - three years ahead of schedule.
The repaid money flows back to the institutions NAMA was established to help, including Allied Irish Banks and Bank of Ireland, who were issued the senior debt in lieu of non-performing loan books.
Nama's speedy redemption schedule reflects the performance of the assets acquired from the Irish banks during the crisis.
However the agency still has €1.6bn of sub-ordianated paper, which is unlikely to be repaid until the initial target of 2020.
Mr McDonagh said the "elimination of the contingent liability is a significant achievement in itself but it has also contributed to stabilising and reducing the funding cost of Ireland’s debt.”