Has NAMA received a bailout to cover almost €300m of interest payments due 7 days ago?
It came as a surprise earlier this year that NAMA was given a €250m “recoupable advance” authorised by the Department of Finance. This was in addition to the €49m state investment in the NAMA special purpose vehicle and €51m of private investment in the same. When responding to Richard Bruton’s question in the Oireachtas which prompted the revelation of the €250m advance (though the next day it was confirmed in the May Exchequer Statement) Minister for Finance Brian Lenihan said “The second [payment to NAMA – the first being the €49m capital payment to the NAMA SPV] was an advance of €250 million, which must be repaid to the Central Fund by 31 October 2010, to provide the Agency with a liquidity buffer to meet working capital demands pending the establishment of its own funding programme”. So next month NAMA is expected to repay €250m.
Of course NAMA was required to pay on 1st September, 2010 the coupon on its NAMA bonds and a rough estimate is that it needed to pay €290m (see below). The €290m is probably an underestimate as it appears NAMA has been transferring tranches in, erm, mini-tranches and the dates shown are the dates when the total tranche has been declared transferred. Luckily for NAMA, the first coupon on the subordinated debt is only payable on 1st March 2011 – I say luckily because the subordinated debt has quite a nasty rate of interest at the 10-year government bond rate – that’s the one that’s at 6.1% today – plus 0.75% – if banks are getting 7% per annum on subordinated debt for 10 years then why not having the debt honoured at the end if NAMA makes a loss might not be such an issue?
These type of moneys are regularly transferred to NAMA and believe it or not Anglo Irish Bank as well
Is there anyone asking the questions why we are paying these huge sums out to an entity that has no idea what to do with the countless of boxes of documents coming from the Banks that are supposed to contain the relevant deeds and convaincing documents needed to show ownership of property and any outstanding charges on the properties concerned .
I am reliably informed that this documentation is no where near complete and the question has to be asked why are NAMA paying for property that has no proper documentation?
At this stage we the taxpayers may have an even bigger problem on our hands if we are taking control of property that has no proper convaincing, no proper or up to date deeds and that may in most cases have been compromised by having multiple charges already over the same properties
Of course the banks are delighted to be rid of such toxic assets.
Even by the standards of the global banking collapse, Anglo Irish Bank stands out. From a loan book of about 75 billion Euros when the government took over in 2009, Anglo Irish says that it has only about 12 billion Euros in loans that it classifies as performing. The bank is expected to transfer 36 billion Euros in troubled loans to the asset management agency — about half its existing loans.
source http://www.nytimes.com/2010/09/01/business/global/01anglo.html?pagewanted=2&_r=1&partner=rss&emc=rssSo the question is if you have at least 75 billion of loans and only 12 billion are “performing” that leaves 63 billion not “performing” so you have a loss of 63 billion
And that is just from the figures that have leaked out from Anglo Irish Bank and what about the other banks Allied Irish and Bank of Ireland add another 25 to 30 billion that is just the beginning because as the recession bites we will have mortgage defaults all over the place causing more drops in asset values, get my drift?
Lenihan and Cowen are lying and their cronies are spinning a web of deceit with every press statement they come out with.
something must be done and done fast, if we are to save what is left of our sovereignty
Where have all the performing loans gone?
August 7, 2010 by namawinelake
The last two weeks have seen suggestions that perhaps as much as €8bn of largely performing loans that were NAMA-bound will no longer come within the agency’s control, which would be very bad news for NAMA’s finances.
First we found out that NAMA had agreed not to transfer Paddy McKillen’s loans pending the outcome of Paddy’s judicial review proceedings which are scheduled for October 2010, though with appeals, could take considerably longer. This week we learned Paddy’s Metrospa Limited has sold a property on Old Bond Street in London for GBP £18.2bn and also that another of Paddy’s companies Maybourne has been “inundated” with expressions of interest to provide finance that might redeem the €600m-odd Anglo and Bank of Ireland loans apparently outstanding to the group. Come October, Paddy mightn’t have any NAMA eligible loans. Paddy has assured us all his loans are performing. Paddy has an estimated €800m outstanding to Anglo alone and exposures with at least one other NAMA bank.
full articel http://www.namawinelake.wordpress.com
We are slowly been subjected to a gradual change of what NAMA was supposed to be
With the siphoning off the entire choice bits (performing loans) and leaving the toxic stuff in NAMA for the taxpayers, don’t be surprised to hear calls from the Insiders for a new bank and guess who will have a major share holding of this New bank why our old corrupt pals in Allied Irish Bank, Irish Life and permanent and Bank of Ireland
This will conclude the socializing of all the toxic assets and the privatisation of the profitable assets
This is stealing on a massive scale and no one will do a thing about it
Or will they?
stop this wholesale fraud now.
Is NAMA capitulating to to-paddy-mckillen
namawinelake | August 3, 2010 at 1:35 pm
News today that Paddy McKillen has at last made the sale of that Bond Street property on which pesky Bank of Ireland had previously put the kibosh. The Irish Times had reported previously in relation to Paddy’s judicial review application: “Mr McKillen claims the loans are “fully performing” and their transfer will have “a seriously detrimental impact” on the value of the underlying properties. For example, he said he planned to sell an investment property on Old Bond Street in London for €18.2 million last May, but when he went to enter a contract on the deal he was told by Bank of Ireland that the sale had to be approved by Nama, even though the loan on the property had not yet been acquired by Nama.”
Well NAMA finally seems to have agreed the sale and Paddy has got his €18.2m which is being described as “exceptional”. The company that sold the freehold in the building on Bond Street was Metrospa Limited which is one of the 15 companies joined with Paddy in his application for a judicial review. And with news that the Maybourne group is close to securing finance from the US property company Westbrook Partners and one other unnamed property trust, one wonders whether there will be any NAMA-eligible loans by the time the application for the judicial review is finally heard.
So Paddy may well keep his assets away from NAMA. Certainly bad news for NAMA as they are increasingly depending on performing loans to avoid having to go cap in hand back to the Department of Finance for yet another handout. Being deprived of €800m-plus of Paddy’s performing loans will hurt.
This is bad news for the Taxpayers as we will now end up with all the Toxic stuff and the developers will run away with the choice bits just like I expected they would.
NAMA is a Fraud and a con on the Irish taxpayers
Plain and simple it’s a bailout for the FF Backed developers and Bank fraudsters
Just more lies?
Central Bank report for Quarter 2, NAMA’s resident and non-resident borrowers
The wide-ranging quarterly Central Bank report and forecast published yesterday contains some interesting nuggets on NAMA and Irish property in general. On NAMA, it publishes information on the first tranche which hasn’t been publicly seen before, namely a split of the first tranche loans between resident and non-resident borrowers and also gives the provision the banks held for the loans transferred. The information is on page 39 of the report and is summarised here.
Of note is that the writedown by NAMA on the loans (49.6% in total) comprises a writedown by the banks themselves (23.7%) and NAMA’s additional write-down (26.9%) – given that Anglo’s accounts were published on 31st March, 2010 and INBS’s accounts were published on 9th April, 2010 and they each contained the government’s recapitalisations announced on 30th March, 2010, it is indeed amazing that they were showing their provisions at such a low level – was it a case that the accounts were produced many months earlier and only amended for the government’s injections of capital – wasn’t there any attempt to show the imminent NAMA haircuts? As to the split between resident and non-resident, I’m not sure how much can be deduced. For information the following were reported by the media (not confirmed by NAMA and indeed Paddy McKillen’s spokeswoman has denied that Paddy was in tranche 1) as being the Top 10 developers in the first tranche – spot the non-residents!
As to what the Central Bank say in their report on page 39 about the write-downs with respect to residents and non-residents they are talking rubbish – the figures show that the resident loans had greater write-downs at both the banks and at NAMA.
Fast-tracking of Nama case sought
The National Assets Management Agency (Nama) and the State will ask the Commercial Court next Monday to fast-track the first legal challenge to the agency by businessman Paddy McKillen and 14 of his companies over the proposed transfer of Nama of €80 million loans of the companies.
Mr McKillen claims the €80 million credit facilities from Bank of Ireland are “fully performing”, not impaired, there is no default on repayments, and transfer of the loans would have a “drastic and significantly detrimental” impact on his business and property rights.
He has also expressed “grave concern” about the impact internationally of transfer of the loans to the “toxic bank”, the implications for his companies abilities to raise additional facilities and the valuations placed on the loans by Nama.
For instance, Nama had obtained a Stg£725.9 million valuation from CBRE for assets on which a loan for the UK Maybourne Hotel Group was secured when he had last month obtained a valuation of Stg 994.78 million from Cushman & Wakefield Hospitality
Ltd, he said. He was concerned such valuations would drive down the realisable value of his companies property portfolio.
Mr McKillen said his companies had not purchased any Irish assets since 1998 “and hence have not engaged in speculative development”. His companies instead invested in “world class retail centres and other quality assets”.
This is just the bigining of a long legeal battel and I suspect the Taxpayers of this country will again fut the bills
everybody involved will walk away with fat pay cheques except the poor taxpayers of Ireland