NAMA takes on £3.35bn (€4bn) loans linked to NI assets

The BBC notes that “Nama, the bad bank agency set up by the Irish government, is to take over loans originally worth around £3.3bn linked to assets in Northern Ireland.”   RTÉ gives the figure revealed today by Peter Stewart, the head of Nama’s advisory committee on Northern Ireland, as a “qualified estimate” of £3.35billion [pdf file] (€4billion) and adds

Mr Stewart estimated that around €2.4bn of the loans were linked to undeveloped land, €1.2bn to investment properties and €400m to projects which were in the course of development.

He said Northern Ireland had experienced its own property bubble in undeveloped land.

Mr Stewart said that while NAMA did not have to sell ‘today, this month or this year’, it did have to operate to a ten-year time scale. [added emphasis]

‘Even over such a period of time it is likely that we will see what was previously viewed as potential development land being sold to go back to farmland.

‘For those builders, developers and also land traders and speculators who got caught up in the frenzy, unfortunately there is going to be financial pain,’ he warned.

, , , , , ,

  • barnshee

    Bring it on

  • A.N.Other

    I believe that the bubble was mostly driven by speculators from the South;

    Some direct action in Dublin:http://url.ie/7nxu

  • Alias

    “Even over such a period of time it is likely that we will see what was previously viewed as potential development land being sold to go back to farmland.”

    Well then we had better hope that farmland enjoys an increase in value of several thousand percent because otherwise the government is lying when it claims that these degraded assets will regain their value and that taxpayers will actually make a profit on NAMA.

    It doesn’t matter to the EU ir to their puppet administartion in Ireland if these assets are loacted in Ireland or in Northern Ireland: all that matters is that the banks in Germany and elsewhere in the EU do not lose money as a result of their reckless lending within the EU.

  • joeCanuck

    ..lying when it claims that these degraded assets will regain their value

    They will, someday. But keep in mind that, after the Great Crash of 1929, the US stock market didn’t return to its previous value until 1954, if memory serves me well.

  • joeCanuck

    A problem with reporting stories like this is that so few, myself included, have little comprehension of what the huge numbers really mean. Perhaps they should be converted to something that we can readily understand like the equivalent per citizen.

  • interested

    “the banks in Germany and elsewhere in the EU”
    presume it also includes banks in UK

  • aquifer

    There is a figure of 22,000 euros per ROI citizen, but I cannot remember if this is the national debt or just NAMA.

  • Wilde Rover

    joeCanuck,

    “A problem with reporting stories like this is that so few, myself included, have little comprehension of what the huge numbers really mean. Perhaps they should be converted to something that we can readily understand like the equivalent per citizen.”

    Or (if I understand the situation correctly) what percentage of NI is now owned by the Irish taxpayer?

  • Alias

    Yes, Joe. Farmland that is worth 3k an arce will of course jump in value by several thousand percent to circa 5m an acre after the government converts the development land into farmland. You’re a real sharp businessman, ain’t ya? I wonder why no other business or bank wants to touch these toxic assets? I guess they just don’t have your smarts.

  • jtwo

    ‘driven by speculators from the South’

    Uttter nonsense.

    It was not southerners who developed the 2m sq ft of speculative offices currently lying empty round Belfast.

    Can you name me any big southern based developers who were very active here, apart from Harcourt?

  • Johnkingii

    Anglo Irish banks £34 billion has just killed off Irish unity as effectively as any Republican terrorist campaign if not more so

  • joeCanuck

    Alias,
    You have totally misunderstood the intent of my comment. By about 180 degrees or so.