Belfast Telegraph

Nama admits only 21% of loans are performing

By John Mulgrew

Just one in five of Nama's loans is performing, Nama has admitted, with the agency trying to manage €18.8bn (£15.6bn) worth of loans now in arrears.

The agency's latest quarterly report shows that 83% of the non-performing loans are four months in arrears.

Nama is now faced with either restructuring these loans or moving against developers through the courts.

In June, 23% of the bad bank's loans were performing but the figure had fallen to 21% by the end of September.

The value of the loans which are not performing were listed as being originally worth €56.1bn (£46.5bn) by banks before they were transferred to Nama. The agency now values the loans at €18.8bn.

Nama chairman Frank Daly and chief executive Brendan McDonagh said the number of non-performing loans was likely to continue rising.

"It should be noted that as Nama disposes of income generating assets, the performance of the loan portfolio may deteriorate," the two men said in their quarterly report.

Yesterday's report stated that by the end of last September, Nama had approved €5.8bn (£4.8bn) of asset sales and had received €2.5bn (£2.08bn) of those proceeds at that time. In the third quarter of 2011 it also took in €1.8bn (£1.49bn) from borrowers and repaid €500m (£415m) in debt.

Nama has approved the sale of assets worth around €6.6bn (£5.4bn), although 80% of the sales were linked to assets outside Ireland.

Mr McDonagh said in December that the property company expected to make an operating profit of €600m (£497bn) in 2011 although he admitted that write-downs on property values would lead to a bad debt charge which would lead to net loss.

The agency recorded a net loss of €1.1bn (£0.90bn) in 2010.