NAMA – the figures

An update on the figures behind NAMA.

  • NAMA will pay €54bn for €77bn of loans. The property which these loans are secured on has a current market value of €47bn. NAMA is paying an extra €7bn based on the “long-term economic value” of this property.
  • This €77 billion, estimated by the banks, is made up of approximately €49 billion land and development and approximately €28 billion associated loans.
  • The loans identified for potential transfer consist of almost 2,000 customers with around 21,500 loans.
  • The breakdown among the five institutions is: Anglo Irish €28 billion, AIB €24 billion, Bank of Ireland €16 billion, EBS €1 billion, Irish Nationwide €8 billion.
  • Around €9 billion of the €77 billion is interest roll-up, or interest payments postponed.
  • 66% of the loans are in the Republic, 21% in Britain, 6% in Northern Ireland, 3% in the US and 4% in Europe.
  • The NAMA figures are based on estimates that Irish property prices have fallen by an average of 50% since the loans concerned were given.
  • Property prices will have to increase by 10% over the next ten years for NAMA to make a profit.

That’s the main information so far. No detail was given yesterday by Brian Lenihan on how much money the five banks will need in the next few months after its loans are put into NAMA.

The banks will need to be recapitalised once their loans are transferred. If the government has to invest more money into the banks, they will be taking ordinary shares and therefore it could end up owning a majority stake in either AIB or Bank of Ireland i.e. a part nationalisation.

The banks may decide to raise money instead by doing a rights issue, attract outside investors or sell off some assets e.g., AIB may sell its shares in M&T Bank  in the US.

Based on the share price increases in both AIB and Bank of Ireland today, it looks like investors are happy with NAMA.

So what do you think of NAMA?

Vote in our online poll.

The above figures are from rte.ie

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4 Responses to “NAMA – the figures”


  1. 1 joe September 17, 2009 at 10:33 pm

    Investors may be happy.
    The tax payer is definitely NOT HAPPY.

    we’ll be paying this Debt back for years in the form of MORE LEVIES, higher taxes,higher reductions in wages. Higher premiums on house/flats etc.

    Price of living in huge in Ireland. It will be unbearable to survive.

    I don’t agree with NAMA, and i think it was a reckless decision on the governments behalf to make such a choice for a tax payer.

    Bailing out the banks seemed to be all the government done/is doing.

    Where has the help been for the people??
    They say this legislation was to free up the banks and get them lending again,and takes us out of recession!
    What about the small businesses that have gone into liquidation and cant pay back loans/interest.

    What are they going to do? start over AGAIN with huge debt on their hands?unlikely.

    This government seems to take action only at the last minute.NAMA is still not set up and no departments have been organised.

    I emailed the recruitment department to see what they have in place. thinking there way going to be a small department set up. yet i got an answer of ”
    At this time, no vacancies in any Department. However, if you wish
    to submit a CV we can hold it on file for NAMA recruitment and contact
    you should something suitable come up.”

    So we bailed out banks for 77billion to put it into an agency that isn’t even ready to put a desk in a building.

    Humiliating

  2. 2 Daragh September 18, 2009 at 3:18 pm

    Hopefully the banks will start lending now!

  3. 3 joe September 20, 2009 at 12:24 am

    Lending to the economy wont make that much of a difference. We still have loans worth 77billion which need to be paid off. Not to mention the current deficit our country has,and only growing each day.

    I’m against NAMA, even if i were for it, Our country is facing serious financial difficulty. NAMA is only a fraction of the problem.

    Everything we do,say,act on,etc affects us.

    The Irish Economy has been built on a fake foundation.

  4. 4 Daragh September 20, 2009 at 4:10 pm

    well, the only reason we have banks is to lend to businesses and individuals in order to expand, buy a house etc!

    thousands of people have lost jobs because bussinesses cannot get credit from banks.This leads to the government having to pay benifits to these people which adds to the countries borrowing!.
    Also what forign investors will invest in a country with a non functioning banking system!


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