NAMA to "buy" loans from foreign banks?

[Outlander]

UPDATE 1-Irish 'bad bank' may buy RBS, KBC loans | Industries | Financial Services & Real Estate | Reuters

DUBLIN, June 12 (Reuters) - Ireland's new National Asset Management Agency (NAMA) will consider buying loans from Irish units of foreign-owned banks under the country's "bad bank" scheme, the finance ministry said on Friday.
The "bad bank" law to be published this summer will focus primarily on six Irish-owned banks covered by Dublin's state guarantee for bank liabilities.
But NAMA will consider buying assets -- ranging in quality from well-performing to soured loans -- from other banks operating in Ireland, a ministry spokesman said, confirming a report in the Irish Times newspaper.


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NAMA will consider buying loans from foreign-owned banks on a case-by-case basis if they have Irish property developer customers who also drew loans from Irish banks taking part in the 'bad bank' scheme, the Irish Times said.

The developers digout is extending its remit. The poor lads with loans from foreign banks can't be left out in the cold.

[athlonedub]

Depending onthe level of "haircut" being offered by NAMA, this could end up being a good deal for the State ! Ballsbridge might be bought for a steal !!

[HarshBuzz]

someone tell me this is all a bad dream

not content with taking on the liabilities of all the domestic lunatic banks, are we also now to take the hit for the likes of Ulster bank (who financed Sean dunne's idiocy in Ballsbridge)?

[DCon]

Depending onthe level of "haircut" being offered by NAMA, this could end up being a good deal for the State ! Ballsbridge might be bought for a steal !!

You're having a laugh

[athlonedub]

You're having a laugh

Well you have to reckon that NAMA is going to force these banks to offload the loans and related securities (ie properties) at fairly severe discounts. Yesterday's (I think) press report that US Private Equity \ Vulture funds are looking at getting involved is clear evidence that medium to long term value may be here if NAMA get to buy cheap.

Everything is predicated on the haircut levels that are applied to the loans.

[DCon]

Well you have to reckon that NAMA is going to force these banks to offload the loans and related securities (ie properties) at fairly severe discounts. Yesterday's (I think) press report that US Private Equity \ Vulture funds are looking at getting involved is clear evidence that medium to long term value may be here if NAMA get to buy cheap.

Everything is predicated on the haircut levels that are applied to the loans.

Severe discounts compared to the prices at the height of the bubble may not come close to their actual value which could be even lower than the haircut price. Who knows?

[zakalwe1]

1. is NAMA trying to get into the distressed assets racket? its not as great as you think. Lone Star Funds

2. buying, for example, ballsbridge site for E300m given its purchase price was E750m approx (plus capitalised interest of say 25m) may seem great, but unless you can get the developer to make the payments, or can realise E300m in a sale, then its going to burn a hole in taxpayers pockets rather than banks pockets.

[athlonedub]

1. is NAMA trying to get into the distressed assets racket? its not as great as you think. Lone Star Funds

2. buying, for example, ballsbridge site for E300m given its purchase price was E750m approx (plus capitalised interest of say 25m) may seem great, but unless you can get the developer to make the payments, or can realise E300m in a sale, then its going to burn a hole in taxpayers pockets rather than banks pockets.

Agreed - as I have said, the scale of the haircut is key. Wonder would the Doyles like to buy back Jurys and the Berkley Court........!

[Hazlitt]

NAMA is a nightmare and will be used by their opponents as a noose around the neck of Fianna Fail for many years to come.

NAMA is not doing anything that AngloIrish or any other bank can't do themselves. The only difference - the taxpayers will be backing these "sour" loans rather than the investors who risked their own capital originally.

Why haven't the government done anything to try encourage new banks to set up in the country? They could begin by putting a blowtorch to the heaps of red-tape new banks need to fight their way through to set up here, and secondly tax incentives to encourage investment in this area.

Shifting the risk onto the taxpayers was an absolutely disgusting move by the government.

[powderfinger]

someone tell me this is all a bad dream

not content with taking on the liabilities of all the domestic lunatic banks, are we also now to take the hit for the likes of Ulster bank (who financed Sean dunne's idiocy in Ballsbridge)?

If Harney's co-lactation folly goes tits up,will the NAMA provide ambulatory succour for UB's financing of the Beacon Medical Centre?

Ulster Bank's expansion plans - Property, Unsorted - Independent.ie

Ulster Bank's property finance division has handled some of the largest property deals in recent years, including Sean Dunne's purchase of Jury's Ballsbridge (with the fastest turnaround ever for a deal of this size), the Beacon Medical Centre and the recent funding of the €525 million purchase of the Fosse Park shopping centre by Irish investors.
The latter was the largest single retail property acquisition in the UK this decade.
Ulster Bank Property Finance employs approximately 100 people in total, at head office in Dublin and at five regional centres (soon to grow to 9) providing services and investment facilities, mainly to businesses and high net-worth individuals.
The highest growth levels in recent years have come in the retail and office sectors.