Nama And Dublin

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Nama chairman Frank Daly and Minister for Finance Michael Noonan at a formal review of the Nama’s operations this morning

RTÉ reports:

The report finds NAMA is ahead of schedule and anticipates being in a position to dispose of its assets more quickly than originally envisaged.

The agency is expected to have paid back more than 80% of its senior debt of €30.2bn by 2016, two years ahead of target.

NAMA should be able to repay its debt – Department of Finance (RTÉ)

Read the full 52-page review here

Via Merrion Street

18 thoughts on “Nama And Dublin

    1. Rob

      I wouldn’t want to live in Canary Wharf, but the docklands probably wouldn’t be as dead at the weekends as it’s not as far from the main part of the City.

      But if employed half the people that CW did (a big ask) it would go a long way to eliminating graduate unemployment in Dublin.

  1. Zynks

    I thought that the impaired loans were transferred to NAMA based on current (at the time) valuations of the assets. If so, and considering the significant increase in property values since then, wouldn’t breaking even be a huge underperformance?

    1. Rob

      No, they were given a long term value which everyone thought was a scam to give the banks a bit of extra money. It probably was, but it seems to be working out at the moment. Unless all the new supply they release undoes the price increases which are mainly as a result of a lack of supply.

      1. L'esprit de l'escalier

        The whole thing is a scam, the bigger the haircuts were on the loans, the bigger the recapitalisations would have had to have been for the banks. So paying tiny amounts for the loans would have resulted in huge recapitalisations for the banks, a scam either way.

        When working out whether NAMA runs at a profit or not, people better not forget why the banks had to be recapitalised. We currently own PTSB and AIB as a result of this.

    2. serf

      They were transferred at “long term economic value”, a subjective concept which, depending who you spoke with was either (i) a pointless underpayment resulting in massive capital shortfalls in the banks for the State to fill, or (ii) a generous overpayment exposing the State to further losses in NAMA. The reality is that there was no market for either loans or property at the time NAMA was established. The LTEV would have factored in the recent recoveries in property values (the report shows this). The result is that (quite rightly) it seems NAMA did not either overpay or underpay the participating banks by very much.

        1. WhoAreYa

          Did he? Do we know a) price paid for loans or b) the valuation of properties not yet sold?

          On balance it looks positive with the upturn but I wonder how much rubbish is there in NAMA that will never be sold anywhere? Any figures for that?

  2. johnboy

    And the people who “have the skills to develop the sites” will re-emerge and take their rightful places as masters of the universe once more.

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