Edited version of a statement from Nama on the first loan transfers to the agency
The National Asset Management Agency (Nama) will acquire over 1,200 individual loans with a nominal value of €16 billion for a consideration of €8.5 billion, representing an average discount of 47 per cent.
Speaking today, Frank Daly, chairman of Nama, said: “Nama is a key element in resolving the difficulties of the Irish banking sector. Thanks to the considerable effort, dedication and skill of all involved in Nama, the loan transfers have commenced within a month of EU approval. The board of Nama’s guiding principle to date has been to safeguard the interests of taxpayers by taking a scrupulously objective view of the value of the underlying assets and the security attaching to each and every loan. We will remain resolutely focused on taxpayers’ interests as our work continues in the months ahead.”
Brendan McDonagh, chief executive of Nama, said: “Our sole focus at Nama is to bring proper and disciplined management to these loans and borrowers with the aim of achieving the best possible return and to protect the interests of the taxpayer. We will assess each borrower’s viability rigorously over the coming months as part of the business plan review process, which will be a new start for all the parties involved. Nama is willing to engage with an open mind to our acquired clients, but I wish to reiterate that we require full disclosure of all material information and we will not waste time with borrowers who do not wish to cooperate.”
McDonagh added that borrowers whose loans have been acquired by Nama will be required to submit a comprehensive business plan in accordance with Nama’s template within one month, outlining how they propose to honour their loan commitments.
Where these plans are approved by Nama, it will monitor the borrower’s subsequent performance to ensure they adhere to the targets contained in the approved business plans. Where these plans are not approved or not received, Nama will take whatever actions it considers necessary to protect the interests of the taxpayer.