Today is the deadline for banks and building societies covered by the State guarantee to provide a breakdown of their property loan portfolios to the National Treasury Management Agency officials working on the National Asset Management Agency (Nama) project.
The aim is to provide an up-to-date picture of the deterioration in loan quality to facilitate preparations for the immediate transfer of troubled loans into Nama once the legislation is enacted. Each of the institutions was told last week to consolidate data on their loans.
First into this process will be Allied Irish Banks (AIB), Bank of Ireland and the Educational Building Society (EBS), each of which has incurred big losses on their property and development loans.
Dozens of bankers in large institutions such as Bank of Ireland and Allied Irish Banks (AIB) are said to have been engaged in the process of collating and consolidating data on their biggest debtors in preparation for the transfer of loans whenever the new agency is established.
With loans valued at up to €90 billion to be transferred to Nama, the collation of up-to-date data on the current position of even the top 50 or 75 borrowers is likely to generate voluminous paperwork.
Today’s deadline, described by Government and NTMA sources as a flexible timetable for the provision of key information, comes ahead of an appearance before an Oireachtas committee tomorrow of the NTMA official in charge of the Nama project.