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Thread: Nama: the truth it's a bailout for developers

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    Politics.ie Member Dreaded_Estate's Avatar
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    Default Nama: the truth it's a bailout for developers

    Nama: the truth it's a bailout for developers - National News, Frontpage - Independent.ie

    The National Asset Management Agency (Nama), which was set up to cleanse the banking system of toxic debts, has been revealed to be solely a bailout for builders and developers.

    The stark truth of the agency's core objective emerged this weekend as the Government's banking strategy lurched towards outright nationalisation.

    The deepening crisis in European stock and currency markets forced the Educational Building Society (EBS) into state control as it failed to find private investors, and now market analysts say that AIB, the country's largest bank, will be effectively nationalised by the end of the year.

    The unravelling of the Government's banking strategy -- which was designed to avoid nationalisation -- came as Frank Daly, the chairman of Nama, announced that its "core objective will be to recover for the taxpayers whatever it has paid for the loans in addition to whatever it has invested to enhance property assets underlying those loans. It is expected that Nama will have a lifespan of seven to ten years and when it has achieved its core objective, it will be wound up".

    Nama will buy loans worth 81bn from Ireland's main banks, but will pay just over 43bn for those loans. Mr

    Daly's comments suggest that the borrowers -- including the 10 largest property developers who owe a staggering 16bn -- will be expected to repay half of what they owe.

    Mr Daly said that due diligence by his staff had discovered remarkable flaws in the legal agreements that developers had signed to secure their loans. He said that "much of this lending was carried out in haste and inadequately secured and documented", making it difficult to pursue developers for the personal guarantees that many had offered to secure their loans.

    In effect, Nama has become the bailout for developers that the Government always claimed that it would not be.

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    Who ever believed that it was anything else?

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    I am unclear as to how Daly's comments can be interpreted to mean that developers will only be required to repay half of their borrowings. NAMA has paid approx 50% of the value of the loans but the developers will still owe 100%

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    Politics.ie Member Dreaded_Estate's Avatar
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    Quote Originally Posted by Sailor View Post
    I am unclear as to how Daly's comments can be interpreted to mean that developers will only be required to repay half of their borrowings. NAMA has paid approx 50% of the value of the loans but the developers will still owe 100%
    The developers may owe 100% but I would bet that not 5% will repay 100% of their loans.
    Most will be given "deals" to entice them to repay and complete developments.

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    Quote Originally Posted by Dreaded_Estate View Post
    The developers may owe 100% but I would bet that not 5% will repay 100% of their loans.
    Most will be given "deals" to entice them to repay and complete developments.
    +1

    Once the developers submit their new business plans my suspicion is that developers will be given a fresh start from NAMA. A sort of fiscal year zero.
    "The war against drugs is unique in all conflict: we can win it, simply by ceasing to fight it."

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    Politics.ie Member rockofcashel's Avatar
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    People will eventually begin to see this for what it was, when ordinary householders start having their homes reposessed in large numbers and our large developers don't
    1,197 people agree with me.. how many agree with you ?

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    No doubt tonic/hal/tonys and a couple of the other NAMA proponents will be along now any minute to tell you DE that this is wrong and that the plan will give us a profit in the long term. Give it time lads or something along those lines.

    As I said from the start everything FF touches and has a hand in creating inevitably turns into an expensive mess that coincidentally always seems to result in equally expensive quango stuffed full of the faithful. NAMA being the pinnacle of their achievements in circular reasoning and lunacy. But sure lads anyone who was against this plan based on the track record of FF were numpties.

    Sadly though people will still vote for these vipers.

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    Quote Originally Posted by Sailor View Post
    I am unclear as to how Daly's comments can be interpreted to mean that developers will only be required to repay half of their borrowings. NAMA has paid approx 50% of the value of the loans but the developers will still owe 100%
    The loans will indeed be paid in full.

    By us. We will however according to Daly recoup 50%( doubtful in my opinion) and the other 50% we will pay by way of recapitalising the Banks.

    And the real twist will come when we discover that the very same developers who owe the money will get to buy back the properties now owned by NAMA with the protected profits they made when they were borrowing the money in so called "haste".

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    It was completely obvious from the start that NAMA was am Irish taxpayer funded SCAM to bail out the developers - I have stated that from the start and many times on this forum.

    Who ever thought it was anything else ? Our children's futures have been mortgaged to bail out Zanu FFs friends - The people responsible for this should be in prison and we should have been on the streets resisting this from the start . .
    Last edited by Tigris Celtica; 30th May 2010 at 12:25 PM.

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    Politics.ie Member An Gilladaker's Avatar
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    Its known as Galway tent syndrome did the developers donate the dough

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