Tag Archives: Nama

httpv://www.youtube.com/watch?v=mfF1SgPp9nw

Finally.

Dole TV explains Nama:

A lot of research was done for us by Dr Conor McCabe and Unlock Nama. All made by unemployed people. No budget. Quote form celebrated Greek economist Yanis Varoufakis: “Positively brilliant. The truth behind the Irish state’s insolvency. Bankruptocracy at is best (or is it worst)? “

From the Financial Times’ Alphaville blog:

“We’ll avoid the accounting implications of this deal, though we think it might be an interesting study,” we said last week of Ireland’s circuitous non-deferral deferral of a €3.06bn cash payment to a dead bank under the infamous promissory notes.

Oops.

The “government” didn’t pay cash to Anglo – but Nama, the bad bank which is a Eurostat opinion away from being the government, effectively did.

According to the Irish exchequer statement for 31 January to 31 March 2012 [published yesterday], the government deficit plummeted to €4.26bn, from €7.066bn a year earlier. Not bad. Actually some key sources of tax revenue show marked improvement, such as VAT, capital gains and income tax. This is good news. But they’re not that good news for the headline fiscal deficit number we have.

The biggest “improvement” then is the “deferred” government payment to Anglo Irish, which isn’t really deferred but which has fallen out of the headlines because it’s come from Nama instead.

Now You See The Promissory Notes In The Deficit, Now You Don’t (Jospeh Coterill, Financial Times)

Frank Daly spoke with Matt Cooper of Today FM on the Last Word yesterday. The Nama chairman robustly defended the performance of the secretive ‘bad bank’ and those six figure payments to bust property developers. It’s a long transcript but worth a read.

.
Matt Cooper: “How much has NAMA changed from what it was originally set out to do?”

Frank Daly: “It hasn’t changed at all in relation to the fundamentals. The fundamental objectives of the agency, you mentioned yourself, it was designed to take all those bad loans, the land and development loans off the banks and we have done that. That’s been our first major task. Something like 16,000 loans, totalling, on the book value about €74 billion, which is a massive amount of money. We took those off the banks’ books. We cleansed the banks’ balance sheets of that dross. And that was our first and main job of work, which I think we’ve done quite successfully. Our task now and our task for some time has been to actually manage those assets, manage the loans, manage the collateral behind them. To get the best possible outcome for the Irish taxpayer and that’s what we’re focussed on, right now. And that’s a mixture of, you know, selling assets and of managing those assets and in some cases actually, investing in those assets – so we do get a better return over the remaining nine or so years that are left for NAMA to do that.”

Continue reading →

Read the statement by the Minister for Finance, Michael Noonan, to the Dáil this afternoon on the March 31 Promissory Note here.

In short: He’s replaced the promissory note with a government bond (so it’s one IOU for another). This bond is given to Anglo, who take it to the Bank of Ireland. The BoI gives Anglo cash in return for the bond, thus paying off the promissory note payment. Meanwhile, the BoI swaps the IOU with the ECB in return for cash.Where Nama comes into it confuses us entirely.

THE challenge: Can anyone explain this transaction in less than 50 words?

Meanwhile, a welcome Irish Times typo:

Earlier: Anglo Boss Made €866,000 LAST YEAR

Thanks BlackMamba