The author of the McGarr Solicitors blog on NAMA…
NAMA’s purpose is to defer the fixing of the valuation of the loans as long as possible. It claims that it is paying prices reflecting “long term economic value”. This is an admission, of course, that the loans are not currently worth NAMA’s estimate.
Long after the Government has left office we will learn the real value of NAMA’s “assets”. So, too, will the Central Bank and the Financial Regulator. Only then will the cost of the Bank Bailout be known.
The Government devised NAMA. It has designated NAMA as exempt from Freedom of Information legislation. When this writer asked for information on the agreement between the Government and the Commission of the EU on the NAMA loan pricing mechanisms, the information was refused.
Everything of relevance in the possession of NAMA is a secret…
Worth reading in full.
Whilst no one contests the lack of transparency at NAMA, it seems that NAMA has at least up to now valued loans in a way which has been acceptable to the EU, whilst paying 10% over current market values. And in that sense has NAMA at least been part of the mechanism to give certainty to the level of losses at the banks?
NAMA of course is valuing the current market values of the loans by reference to 30th November, 2009 and given that property values have continued to fall in NAMA’s primary market (Ireland), it is quite likely that NAMA is overpaying by c€2bn in the remaining tranches compared with valuations at today’s values.
What about the 400 Million Euro hurling field in Ringsend, and ditto all about the nation? Have they been factored in also?