I have been told by a very reliable source that a certain developer has told a certain nationalized bank that they can now F off, he has no intention in paying his arrears or renegotiating his loans as they are destined for NAMA. Whatsmore he believes a bunch of amateurs will run NAMA for 2/3 years and basically do nothing.
All he has to do is sit back and wait. No one is going to expect his loans to be paid back so he has no reason to meet his obligations.
The Liam Carroll case is simply a microcosm for all our developers. Not only is the value of the collateral (land, apartments, shares) falling, but the debt is actually rising because the interest bills aren’t being paid and rolled up. When you have negative GDP, this is a recipe for a depression. Simply put, even if developers wanted to pay, they can’t afford to pay.
If he did tell them to stick their loans up their back passages, then they can pursue him now before the loan is transferred to NAMA. I’m not saying they will - we all know they won’t - but they have the power to so he’s a bit premature telling them to f- themselves isn’t he?
I can see one reason for keeping the names of Developers private under NAMA.
If people could see that a particular developers loans had been Nama-ised but said developer
was still cruising about town in his Bentley or BMW X5, and living in his McMansion with
walk in Dishwasher, well, some might be tempted to take matters into their own hands.
Couldn’t we privatize loan collection? We could keep many of the criminal fraternity usefully employed by offering them a %age of debts collected. If we kept the McCarthy’s and the Dundons busy collecting debts they would probably stop going around killing each other. There seems to be no legal barrier to our friend ‘The Viper’ running his own debt colllection agency - why couldn’t he work for us? To the squeamish I say - look at the criminals we already have out there - scot free - running around costing us money and causing all these problems in the first case. We could extend the scheme to those in jail - just give them a moble - 1 year off for every 10 million raised - for 3700 criminal years we could solve the NAMA problem.
We know the loans will never be repaid, but would it be too much to ask that the debtors are made to pay everything they can, so that they are not swanning around in their Bentleys and living in their mansions?
We’re heading into uncharted territory here. From what I know of the 80s (I was there but it sort of passed me by), people, although being asked to undergo hardship, tighten belts etc, were not aware of the excesses of the elite and the manner in which they conducted their affairs.
It seems to me that celebrity culture and the willingness of many of our current “glitterati”/nouveau riche types to position themselves at the heart of that culture with a view to parading their wealth in public, means that people are much more aware of what the haves actually have this time around.
Personally, Im not too interested in tightening my belt in the national interest at the moment, especially when it would appear that that same national interest seems to amount to little more than an SPV run for a load of fat blokes in suits
Its Noel Smyth and his proposal is for NAMA to buy or complete construction (an additional cost?) on 50,000 properties where the loans cannot be repaid.
He says there were 26,000 ‘new couples last’ year; I assume the implication is that they all need a subsidised 2-bed flat in Swinford or Carrickmacross to live in.
Unfortunately for Noel (and more unfortunately for RTE because they were too thick to question even this level of analysis) if all these 26k couples move into a NAMA property it would only fill half of those he sees available.
As an aside an additional 52k properties (the ones that the ‘new couples’ currently live in) would also flood the market, compounding the problem.
Is this the guy who was on the news last night saying he would pay for a report for de gubberment and there was nothing in it for him. Jaysus lads run quick its a free lunch or is it a mirage maybe we’re gonna get something out of this? Probably .