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

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.