Anglo-Irish Bank will be paid more than €6 billion for the last set of loans it transfers to the National Asset Management Agency (Nama) before the agency has a chance to assess their true value.
The decision will allow Anglo to use newly issued Nama bonds as collateral for fresh borrowing from the ECB, in an effort to ease its increasingly stretched liquidity position.
The agency will pay for the loans upfront, despite its previous insistence that due diligence be carried out on all loans before a transfer takes place.
Nama will seek to recoup the difference if its due diligence subsequently discovers that it has overpaid for some or all of the loans.
The Department of Finance revealed last week that Nama had brought forward the timetable for all five participating institutions – Anglo, AIB, Bank of Ireland, EBS and Irish Nationwide – and planned to conclude the transfer of their remaining Nama-bound loans in one final tranche.
Prior to last week, it had been expected that the institutions would transfer their remaining loans over three, or perhaps four, more tranches.
It has emerged that Nama will apply special conditions to Anglo’s transfer, however.
Finance minister Brian Lenihan said Anglo would complete its loan transfers to Nama by the end of October – significantly earlier than the previous deadline of December.
Lenihan said ‘‘bonds will issue to Anglo in return on the basis of Nama’s current estimate of their value’’.
‘‘The loans will then be subject to due diligence and valued by Nama on a loan-by-loan basis. If any adjustment to their value is necessary, it will be made subsequently.”
The government has informed the European Commission of the change to Nama’s operation, but will need to bring in new legislative regulations to allow payments to be made to Anglo in advance of the formal valuation of the loans in question.
‘‘This expedited transfer will maintain the principle of a loan-by-loan valuation of all Nama transfers and is consistent with the EU state aid approval for the scheme,” Lenihan said.
source
http://namawinelake.wordpress.com/author/namawinelake/
Comment:
Here we have Lenihan again rewriting the rules on accountancy and due diligence
This of course is sheer madness and I just don’t know why this is allowed to continue ,it is as if Lenihan has something to hide or protect.
Has he done some other deal with outside interests?
No where else in the world would this kind of account gimmickry be allowed in fact people have lost their business for less and have been found guilty in attempting fraud
‘‘The loans will then be subject to due diligence and valued by Nama on a loan-by-loan basis. If any adjustment to their value is necessary, it will be made subsequently.”
what good will that do? Anglo will just say we haven’t got any money and the taxpayers will have to stamp up all loses and Lenihan couldn’t care less it’s not coming out of his pocket
This is Fraud and a total betrayal of the taxpayer’s interests and lenihan knows it!
where is this money going to go ?
who’s pockets are getting filled ,
who are the beneficiaries of all this money?
where did the first 22.500,000,000,:00 billion go who got it and why ???????
How many TD’s have loans out from Anglo-Irish Bank ?
Has Lenihan or Cowen or any member of the families loans from Any of the Bailed out banks ?
are they solvent?
Why is the Minster of Finance ready to cripple our country to bail out private bankers and gamblers
if this was the US this bank would be closed down 19 months ago and the directors would be in Jail along with the financial regulator and perhaps Cowen too !
