Anglo to move €8bn as second wave of Nama transfers delayed

 

THE START of the second wave of loan transfers to the National Asset Management Agency (Nama) has been pushed back from this weekend until the end of this month or early next month.

Some €13 billion in loans will move in the second tranche linked to the 20 next biggest borrowers after the 10 most-indebted borrowers in property development, whose €15.3 billion in loans have already transferred to Nama.

State-owned Anglo Irish Bank will transfer the largest quantity of loans moving just over €8 billion in the second tranche, up from an earlier estimate of €7.3 billion.

Allied Irish Banks (AIB) will transfer €2.5 billion followed by Bank of Ireland with €2 billion and Irish Nationwide Building Society with €500 million, sources said.

The second wave of loans are, like the first tranche, expected to be transferred on a staggered basis over several weekends, with Anglo being the last to move loans.

Nama bosses have said about half the total €81 billion in loans to be acquired from five lenders will be transferred by the end of July.

In a separate development, the Financial Regulator will start its assessment of the capital required by Irish Life & Permanent within weeks, stress-testing the group’s €40 billion mortgages as the company drafts a restructuring plan which must be approved by the European Commission. The regulator’s review will be completed over several months.

The regulator has yet to carry a so-called Prudential Capital Assessment Review (PCAR) on the company as it has not received any capital from the Government and the company is not participating in Nama.

IL&P is going to require about €900 million to meet the regulator’s new capital levels – of which it plans to raise €700 million from shareholders when it has a proposal to offload the company’s bank division, Permanent TSB, in a consolidation of the banking sector.

Anglo has not yet been subjected to a PCAR as discussions are ongoing on a restructuring plan.

The regulator also has to carry out a similar review on Irish Nationwide Building Society.