Nama near end of developers review

THE NATIONAL Asset Management Agency has almost completed reviewing the business plans of the 188 developers whose loans it will directly manage.

In a note to its accounts for the second quarter Nama said that 170 business plans of debtors had been reviewed at the end of October. The agency said “significant progress” had been made reviewing the plans of the 600 borrowers whose loans will be managed directly by the banks under Nama supervision.

The State’s “bad bank” for property loans said that 90 per cent of all business plans will be reviewed by the end of this year.

During October the last tranche of loans which Nama will acquire, with a nominal value of €1.9 billion, was transferred to the agency. Nama is now managing loans with a value of €74.2 billion, which it has paid €31.7 billion to the banks to acquire.

Just 23 per cent of Nama’s loan portfolio is classed as performing – a figure that remains unchanged from the first quarter of the year.

By the end of June, Nama generated net cash of €828 million. Cash inflows were made up of €874 million in payments from creditors and income from derivatives of €51 million. The agency had a cash outlay of €75 million which included money advanced to developers to complete projects and provide them with working capital.

Nama said it generated a profit during the second quarter of €118 million, which brings its cumulative profit for the first half of the year to €209 million.

Nama chairman Frank Daly said the results “reflected the solid progress being made by the agency”.