The Irish Attorney General has told the High Court in Dublin that Belfast property investor Paddy McKillen is not entitled to any “special” treatment to prevent his €2.1bn loans being transferred to the Republic’s ‘toxic bank’.
The National Asset Management Agency (Nama) Act 2009 was brought in as part of the State's “unprecedented intervention” via the bank guarantee of October 2008 to support the financial system and economy but Mr McKillen's legal challenge failed to recognise this context, Attorney General Paul Gallagher said.
The State was seeking to deal with the problem at “a macro level” but Mr McKillen and his experts did not recognise the banks could not have financed his loans without the state support provided to them since 2008, he argued.
Mr Gallagher added that Mr McKillen had not moved to refinance his loans after the draft Nama bill of summer 2009.
Mr McKillen is challenging the procedures under which Nama decided to acquire his loans. The case continues.