47% discount across the board (1st Tranche).
81bn worth of loans (in total).
Cost of NAMA haircut = 38bn (estimate).
Update Adding the haircut and the recapitalisation costs together doesn’t make sense, so I’ve removed that calculation.
Consensus view seems to be 32-33bn recapitalisation costs. Per Philip Lane at Irish Economy.
The current projection is that the State injection into the banking system will soon stand at 33 billion or so …
33 billion is about 22 percent of GDP (26 percent approx of GNP).
This is broadly in line with doomsayer Morgan Kelly’s estimate of 30bn in September 2009.
RTE Radio
RTE Live
NAMA text tracker
NAMA on thepropertypin
See also http://www.sluggerotoole.com/index.php/weblog/comments/nama-fit-for-purpose-the-banks-or-biffos-governmentGreenflag recommends
David McWilliams on the Keiser Report
No bio, some books worth reading – The Rational Optimist: How Prosperity Evolves – Matt Ridley .
Crisis Economics: A Crash Course in the Future of Finance -Nouriel Roubini, Stephen Mihm
Discover more from Slugger O'Toole
Subscribe to get the latest posts sent to your email.
