How AIB’s NAMA assets break down -> independent.ie/business/iris … 86304.html
Huh? So there is €400m out of €21b that is non-property? And this is comment worthy how? IMO only to the extent that it must be a absolute minimum amount of diversification that it must have been possible for a bank to do. To call it an “interesting list of sectors” seems to me over-egging the blancmange.
Just over 23B minus 21.6B = 1.5B plus…
Not at all. NAMA was originally for property development loans only. Maybe half of the loan books of the banks when they went bust. The Bill goes into to great detail about what was to be bought. Then recently they changed that through ministerial order so that now the can buy any and all junk. The tax payer will now be paying for all those helicopters, houses on Shrewsbury Road and the suites in Claridges.
That AIB 1.5 billion euro plus of “other stuff” is just the first installment of many billions more of non property loans that the tax payer will be paying for. At this rate at least 6 billion plus of NAMA funds will be used to pay off the essentially personal / life style loans of the bankrupt property developers.
That is were the real bail out will be.
By far the cheapest solution by this stage is to sell all the Irish banks for 1 euro each to the highest foreign bidder and get it over with. This is far more than they are worth and would be a huge bargain for the Irish payer. At this rate it will save at least a further 20 billion of tax payers money over the next decade.
Why should it be any surprise that there are €1.4bn of non-property assets in AIB’s NAMA transfer of €24bn. Look at the regulation on eligibility of NAMA assets and you will find that NAMA may take on shareholdings in companies that were used as collateral for property loans. So, hypothetically, a knickers manufacturing company might have been put up so that a shareholder could get loans to develop a site. The shareholder has met problems and his loan is transferred to NAMA. NAMA will try to get the shareholder to develop a business plan to profitably develop the site AND pay back the loan. If that is not possible then NAMA will recover its debt by taking over the knickers manufacturer. Now NAMA were criticised for having little or no credit recovery experience, what experience have they with knickers?
Maybe Brendan McDonagh will invent a cure for the VPL and the nation will be saved - eureka moment in the shower or something
Not quite Pearse, Connolly et al is it
You’d have to change your nationality - St Pantricks Day and all that
Quick question for the NAMA experts - do any of you know how exactly the NAMA loan figures of €68bn plus €9bn rolled up interest were derived in the context of the 6 banks’ financial statements produced by NAMA in September 2009 in the attached document.
Take AIB. The NAMA estimate in October 2009 was that €24.1m of loans and rolled up interest would be purchased from AIB by NAMA. However the latest statement available from AIB in the NAMA Information Booklet was that it had total loans of €129bn and that €50bn related to Property and Construction of which (apparently) €23bn related to Land and Development and that Watch Loans were €14.1bn Vulnerable Loans were €8.5bn and Impaired Loans were €10.8bn.
The €23bn in loans now expected to be transferred is different I am sure to the €23bn in Land and Development loans last September.