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Thread: A legal challenge to market distortion by NAMA.

  1. #101
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    Quote Originally Posted by SPN View Post
    NAMA is a Bank. It will negotiate terms with a borrower as any Bank would.

    You say NAMA will give them 10 years to repay the loan. How is this any different from what would normally happen? Isn't a loan always paid back over a period of time?





    NAMA is buying all property loans from the Retail Banks. They are getting out of this business. There is no "transfer". It is a commecial sale.


    If someone cannot meet their repayment schedule then NAMA, like any Commercial Bank, will call in the loan, and enforce the security for the loan if the money isn't forthcoming.
    NAMA will have to make the developers pay for it's services before it can claim to breakeven. If it rolls up interest on loans then these will have to be at least the cost of funding plus admin costs.
    The future saviour of the Irish Economy:
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  2. #102
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    Quote Originally Posted by cactusflower View Post
    In favour of the free market Cael? I would have thought you would have welcomed the State becoming the largest owner of development lands on the island.

    But this is just a case of the state holding the land in trust for the oligarchs until a new property bubble can be started. Meanwhile we pay the holding costs.

  3. #103
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    Quote Originally Posted by cactusflower View Post
    Good post SamVimesBoots.

    In addition to what you say, the collateral taken by the banks was often the property itself. If there was additional collateral, we've already seen cases in which it was grossly overvalued property, or property that was used as collateral for several, parallel, failed projects. There may be some foreign property that has kept some value. A lot of the Irish stuff is junk with no prospects for 10-20 years, if ever.

    A lot of the loans were interest only, the idea being that by the time the development was sold (3-5 years) all of the capital would be repaid. Now developers can't afford to pay the interest and will never be able to repay the capital.

    In some way that I don't understand, banks are categorising some interest only loans as "performing" even where interest is not being paid.


    Meanwhile, bank shares went right up today.
    Big gains for banks on Irish Stock Exchange | BreakingNews.ie
    Some people are making a killing.
    I assume no one be as vulgar as to ask whether any judges or their spouses have any bank shares before deciding on any ACC predatory strike which could derail Nama.
    If the banks are out for a bail,
    and Lenny's efforts end up as a fail,
    when the Somer does come,
    to the Country they'll run,
    And leave a Fine mess for the Gael.

    Endinf the one Party (FF) state:

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