Nama redeems another €1bn of senior debt as wind-down continues
Move brings to €22.1 billion the amount of debt redeemed to date
Nama Brendan McDonagh remains confident debt will be eliminated by 2018. Photograph: Frank Miller / Irish Times
The National Asset Management Agency (Nama) has redeemed another €1 billion of senior debt, its fourth redemption this year.
The move brings to €22.1 billion the amount of debt redeemed to date, 73 per cent of the original €30.2 billion issued to acquire bank loans.
Nama’s target is to redeem at least 80 per cent of its debt - equating €24 billion - by the end of 2016.
Moody’s said this week it no longer considers Nama’s debt as a liability for the Irish Government.
The so-called bad bank has accelerated its wind- down of debt since last year, taking advantage of the recovery in property here.
It is on course to repay senior bonds in full by 2018 - two years ahead of its original schedule.
Chief executive Brendan McDonagh said: “We continue to make excellent progress in redeeming our senior debt and removing this contingent liability from the Irish State.”
“We have reduced this contingent liability from €30.2 billion at its peak - over 18 per cent of gross domestic product (GDP) - to €8.1 billion (4 per cent of GDP) today.”
“We remain confident it will be eliminated in full by 2018, two years ahead of our original strategic plan,” he added.