Nama: the truth it's a bailout for developers

Dreaded_Estate

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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.
 


D

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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%:confused:
 

Dreaded_Estate

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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%:confused:
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.
 

rubensni

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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.
 

rockofcashel

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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
 

Fish

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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.
 

MPB

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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%:confused:
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".
 

Tigris Celtica

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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 . .:mad:
 
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Tigris Celtica

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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
Spot on the money...
 

Clanrickard

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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
This is just one of the hysterical and frankly ill considered posts on this thread. Where a developer has given a personal guarantee or where his home is security for the loan then he (are there any shes?) will lose the home. Daly seems to be saying that in some cases the necessary iron clad legal framework may not be in place to repossess loans or pursue developers for all the loans they took out. Not the fault of NAMA but the fault of the lending institutions
 

Black Cat

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I was talking to a middle class couple yesterday who have no mortgage due to inheriting property and they think nama is essential because otherwise the govt wouldn't be able to borrow to pay the husbands wages, they also think ordinary people are in debt because they were greedy and wanted huge houses - hopefully this article in the Indo will make people wake up.
There needs to be a lot more noise made about what's going on in Ireland - the corruption is so endemic here that I want to walk away from the country - why stay and pay taxes for the mistakes of others to get nothing in return, we could work here and pay taxes for the next thirty five years or so and then be told there's no state pension because of this mess.
 

Bismarck

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Maybe I missed something but the headline is a journalist's interpretation and not fact!! Where is the proof in the article?
It's ironic that many contributors to this site who see the Sindo as part of the government conspiracy to fool us about NAMA are now quoting the paper to support their case :D
 

Dreaded_Estate

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This is just one of the hysterical and frankly ill considered posts on this thread. Where a developer has given a personal guarantee or where his home is security for the loan then he (are there any shes?) will lose the home. Daly seems to be saying that in some cases the necessary iron clad legal framework may not be in place to repossess loans or pursue developers for all the loans they took out. Not the fault of NAMA but the fault of the lending institutions
Not necessarily, the developer may simply say I cannot repay the loan in full.
But instead of NAMA foreclosing on the loan they WILL make many deals with developers.

The personal guarantees will be re-negotiated and developers may agree to repay 55c in €. NAMA makes a profit and the developer gets a 45% debt write off.

Win win!! ;)
 

Fisherman1

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Maybe I missed something but the headline is a journalist's interpretation and not fact!! Where is the proof in the article?
It's ironic that many contributors to this site who see the Sindo as part of the government conspiracy to fool us about NAMA are now quoting the paper to support their case :D
Yuo are right. It's not yet a proven fact that NAMA is a bail out for the developers.

The only way we as a population can judge the justice in NAMA is that financial details of all who avail of NAMA are published. Then we will KNOW what NAMA is. At the moment we are paying for a pig in a poke
 

borntorum

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But, but, this article is in the Sindo.

I thought that the Sindo only published wall-to-wall FF propaganda? At least, that's what the weekly threads on politics.ie have always told me.

What's going on?
 

Black Cat

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Maybe they have changed allegience - like the Guardian did in the British general election
 

politico24

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I remember debating a fellow neutral seven or eight months ago about Nama.maybe it was longer than that but anyway I said at the time that Nama was Fianna Fáil trying to protect those who 'scratched its back' during the years of the property deck of cards. That it was a bailout with the people's money of the Galway tent set and that the taxpayer was bailing out people who knew what they were getting into at the time and knew the risks.

My friend said he knew Fianna Fáil were unethical at the best of times but that he would not accept that they would gamble the country's future just to benefit their bedrock support at the expense of everyone else. He eventually convinced me that maybe I was a a bit too distrustful of FF and that maybe Nama was actually a genuine attempt to do the right thing. he argued that they couldn't possibly be so brazen as to introduce Nama for reasons such as those and that there must have been a logic behind it that we couldn't see.

Having read this article, I think my instincts were correct when I first heard about Nama. Sadly, for this country in the FF mindset , Ireland is FF.
 

charley

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But, but, this article is in the Sindo.

I thought that the Sindo only published wall-to-wall FF propaganda? At least, that's what the weekly threads on politics.ie have always told me.

What's going on?
it looks like o reilly's tax exile status is going to be revoked in the next few weeks. scorned billionaires can be a bit huffy.
this is the first indo frontpage that has questioned FF/gangrene coalition in years
 


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