NAMA – National Asset Management Agency

The creation of NAMA was first announced in the April 2009 Irish Budget.
What is this NAMA and what will it do?
The Government line is that NAMA is firstly an asset management company dealing with assets tansferred from banks. NAMA will not be a bank as it will not be taking deposits from the public and will not have a banking licence. NAMA will have loans on its books based on real physical assets, and while some of these will undoubtedly be of better quality than others, they will be a mix of ‘good or performing loans’ and ‘bad or non performing loans’.

The idea is that the NAMA will buy all of the land and property development loans of the six Irish banks of covered by the State guarantee. This means the total potential  value of the loans which will be taken on by NAMA  will be between €80 billion and €90 billion.By taking problem property loans off the hands of the banks, the Government hopes to put those institutions in a position where they can resume lending.
NAMA will probably become the biggest landowner in Ireland. Developers might not yet realise it – but every single land and investment property they own which has outstanding debt could end up in the new National Asset Management Agency

Even if these debts are bought by Nama at two-thirds of their face value – the bill could  be in the region of  €60 billion. ( Ireland’s national debt is currently €54 billion)
It could be 12 to 18 months before NAMA gets going properly. It may need to exist for another 10 to 15 years  – it is  no short-term fix.
Where will the employees will come from, what big shiny office will NAMA  rent?

Is this just a bail out for the developers that the taxpayer and bank shareholders will end up funding? Or is it a viable option that will help get the financial mess sorted. Only time will tell…. if we are all still living here by then and haven’t emigrated!

How To Get a Job in NAMA

First NAMA Transfers Announced