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Shock Horror: NAMA won't recoup full amount owed for land loans - Independent


DCon

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May 5, 2009
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Who'd have thunk it..Demand and Supply actually exists. Maybe Lenihan should have asked a Leaving cert economics student what happens to price when there is excess supply


THE National Asset Management Agency (NAMA) is unlikely to ever get back the full amount it is owed for land loans bought from the country's banks, Credit Suisse warned yesterday.

"There is simply too much development and too much unoccupied property for even more new property to generate yields," said Credit Suisse analyst Niall O'Connor in a note to clients yesterday.
Finance Minister Brian Lenihan told the public last December that NAMA would make a profit for the State over the next 10 years as it sold land for more than it originally paid. The organisation has not yet sold any land and is still valuing land as it buys smaller loans from lenders.

Officials have already conceded that some land NAMA has bought is virtually worthless and the agency may have to bulldoze some half-finished buildings so development land can be used by farmers to graze cattle.
NAMA won't recoup full amount owed for land loans - Irish, Business - Independent.ie
 

Eurocitizen

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Oct 1, 2008
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Why has there not being a thread on this topic before? it is great to see all the intelligent poster together on one thread.
 

Eurocitizen

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Cassandra Syndrome

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Aug 23, 2009
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Why has there not being a thread on this topic before? it is great to see all the intelligent poster together on one thread.
Its crap weather in the midst of the summer holiday season. NAMA bashing and AIB teasing works a treat!
 

Eurocitizen

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MPB

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Bright lads the Swiss.

They managed to create a successful Banking system out of a holocaust so they know their stuff.
 
D

Deleted member 17573

The article says that NAMA will not recover all it is owed. This does not mean it will not recover all that it paid for the loans. This seems to be the point that so many fail /do not want to see. NAMA paid a discounted amount for the loans but the developers still owe NAMA 100% of the value of these loans.
 

supermonkey

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It probably will make a profit. Nama got all this land at a discount and as the tranches are moved over the discounts will increase.

I was saying that there is no need for doomsaying but the worse NAMA is slagged off the cheaper the properties it buys get so slag away! In fact even if you support NAMA and think it is a good idea it is your duty as a patriot to attack the level of discount as not enough!!!!
 

Mossy Heneberry

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The article says that NAMA will not recover all it is owed. This does not mean it will not recover all that it paid for the loans. This seems to be the point that so many fail /do not want to see. NAMA paid a discounted amount for the loans but the developers still owe NAMA 100% of the value of these loans.
But a lot of the developers are broke, so we'll never see those loans repaid in full.
 

MPB

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The article says that NAMA will not recover all it is owed. This does not mean it will not recover all that it paid for the loans. This seems to be the point that so many fail /do not want to see. NAMA paid a discounted amount for the loans but the developers still owe NAMA 100% of the value of these loans.
The Irish tax payer has paid in full for these loans. No discount. In full.
 

MPB

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It probably will make a profit. Nama got all this land at a discount and as the tranches are moved over the discounts will increase.

I was saying that there is no need for doomsaying but the worse NAMA is slagged off the cheaper the properties it buys get so slag away! In fact even if you support NAMA and think it is a good idea it is your duty as a patriot to attack the level of discount as not enough!!!!
Think about that and think hard, but try not to do yourself a mischief.
 
D

Deleted member 17573

But a lot of the developers are broke, so we'll never see those loans repaid in full.
Not the point at issue here - and even if it were what about the properties that came with the loans? But I think you're right that these loans will not be repaid in full - I am saying that this does not mean that NAMA will not recover what they paid for them after the haircut. There could be a shortfall in the amount repaid but NAMA could still make a profit.
 

Oldira1

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Oct 2, 2008
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The article says that NAMA will not recover all it is owed. This does not mean it will not recover all that it paid for the loans. This seems to be the point that so many fail /do not want to see. NAMA paid a discounted amount for the loans but the developers still owe NAMA 100% of the value of these loans.
In other words the developers are getting a discount?
 
D

Deleted member 17573

The Irish tax payer has paid in full for these loans. No discount. In full.
Not through NAMA - stop trying to de-rail the thread by going off on another tangent.
 
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