From the FG press office and Dot.
It appears that the EU have to approve everything to do with NAMA, so, they will need all the valuation methodologies, including the figures, calculations and assumptions.
This will take at least 2 months. This is when property prices are dropping at 1.1% per month.
www.finegael.org - news
release Via Veronica Walsh (VCurrentAffairs) on Twitter (like)
I dont think our european friends are going to be happy with the "bail out the boys" approach of FF. Maybe this explains why FF are dragging their heels with the whole thing?
then it goes to the park....
That news is comforting to me, but is it true?
I wonder if the EU will want to see the crazy SPV structure which has been designed to hide the cross colaterlisation that was going on? That will take them ages to figure out, and if they do figure it out, there is no way they will throw good money after bad?
Inconvenient in the short-term (if you buy into the notion that banks will start lending again once this is done) but a major relief in the long run. Proper scrutiny of the valuations and assumptions involved is essential, and it doesn't look like it's going to happen here.Originally Posted by Digout
This is great news if I understand correctly. As Regan says in his press release, the EU are not supposed to approve something like this if it appears unviable. Clearly NAMA isn't viable...
I have opinions of my own - strong opinions - but I don't always agree with them. - George Bush
This thread is based in an FG release , the issue is quasi-emergent. speculation l s'pos is to be expected. www.finegael.org - news
“There is still no more clarity on valuations or on how the cost of NAMA will be shared, both of which are requirements under EU guidelines, at this point, despite the intensive debate taking place. This will undoubtedly be a cause of real concern for the EU Commission whose approval is needed before NAMA can be considered a done deal.
“The Commission, which has recently imposed very strict conditions prior to approving State aid for financial institutions in the UK and the Netherlands, will undoubtedly see NAMA for what it is – a work of fiction. The draft business plan suggesting a profit of €4.8 billion must be critically examined by the Commission, as must the proposals of the Government on the restructuring of the Irish banking sector. The EU does not approve State Aid to entities which it deems to be unviable.
“I have no doubt that the EU Commission, if it approves NAMA, will impose strict conditions in relation to valuations, haircuts and the divesting of banks’ assets as in the case of AIB and Bank of Ireland. As no State aid is permitted for companies which are deemed to be unviable this raises serious question marks about the participation of Anglo Irish Bank in NAMA. The requirement for rigorous scrutiny and approval by the Commission makes the future of the entire NAMA project by no means certain.”
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