2 days ago
Nama increases State contribution forecast to €5.5bn as windup nears
The
National Asset Management Agency
(Nama) has increased the estimated lifetime cash contribution it will end up giving to the exchequer by €300 million to €5.5 billion, as the State-owned bad bank prepares to be wound down by the end of this year.
The increase has been driven by an upgrade to the agency's lifetime surplus target to €5.5 billion from €4.8 billion, previously. It has also marginally increased its corporation tax projection by €50 million to €450 million.
'The Nama board and my colleagues throughout the agency have always seen our role as set out by the legislation passed by the Oireachtas in 2009 as trying to do the very best we can on behalf of the taxpayer and the State,' said chief executive
Brendan McDonagh
.
'Every decision, every engagement with a debtor, every transaction – they were framed against a commercial backdrop of maximising the amount that we believed could be recovered for the State.'
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Nama, which was set up in 2009 to take over toxic commercial property loans from the country's banks, said on Wednesday its portfolio has fallen from a peak of €32 billion to less than €100 million fair value.
This has been through a mix of selling of portfolios of loans over the years and debtors repaying their loans by working with Nama, or refinancing elsewhere. Nama generated €600 million of cash last year.
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Nama is on track to take over the remnants of
Irish Bank Resolution Corporation
(IBRC), formerly
Anglo Irish Bank
, and the enlarged organisation dissolved by the end of this year, subject to enabling legislation being passed. The remains of both will end up in a special resolution unit within the National Treasury Management Agency (Nama).
Nama generated €600 million of cash last year, brining the total since its inception to €48.3 million. The exchequer has so far received €4.69 billion of Nama's expected lifetime contribution.
The agency reported a €197 million net profit last year, marking a 14th consecutive year of profitability.
