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The Irish Government have recently introduced NAMA, the National Asset Management Agency. This will have major repercussions for those involved in the property industry. Bankhawk are specialist advisors who can answer any issues you may have regarding NAMA. Bankhawk have assembled a management team comprising highly qualified and experienced advisors who have much knowledge of corporate banking. Our management team have held a variety of senior positions with a number of the leading Irish banks and include specialists in both corporate lending and financial services. Bankhawk provide the following NAMA-related services: - Pre-NAMA audit of bank loans
- Pre-NAMA bank debt strategy
- Post-NAMA bank debt strategy
- Negotiations with Bank/NAMA
If you have any queries or are seeking advice in relation to NAMA, please contact us at 01-6627679 or you can email us at
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The following outlines relevant details in relation to the Proposed Asset Management Company: Agency Structure
The Agency will be a commercial Semi State entity under the governance, direction and management of the NTMA and be designated as the National Asset Management Agency.
Institutions Covered
Those who are regarded by the Government as appropriate for inclusion having regard to the structure of their loan book, their access to support, their ownership structure and their relative importance to the national economy.
Assets Covered
All loans in respect of the purchase of land for development and associated work in progress arrangements. In addition, certain property investment loans, especially where associated with the largest borrowers. Exact assets will be considered further. Size of NAMA
The size of NAMA is potentially €80bn to €90bn in assets (based on current book value, but to be transferred at an appropriate discount).
Pricing
Portfolio pricing is dependent on the category of underlying security. Appropriate percentage discounts would be paid for land and development loans and for property investment loans depending on the assessment of risks involved. The objective should be to break the link between banks and the property assets, at least at the outset.
Timeframe
Budget day announcement with legislation enacted soon thereafter. Preparation of legislation and preparation of the management structures would be initiated in parallel.
Legislation
The NAMA initiative would require new legislation (the "NAMA Act") which would create NAMA under the umbrella of the NTMA.
Participation
Optional participation is proposed but banks would have to agree that all loans in particular portfolios have to be sold to NAMA. The legislation should also provide for a mandatory power to acquire assets so as to ensure cooperation on the part of institutions or to overcome legal difficulties with the assignment of assets.
Payment
Property loans sold to NAMA will be paid either in Government Bonds or in Government guaranteed bonds issued by NAMA.
NAMA Windup
The government will on the winding up of NAMA to determine if it has made a profit or a loss in its lifetime. Any profits will accrue to the State. If there is a shortfall the Government intends that a levy will be applied to recoup it..
Special Purpose Vehicles (SPVs)
In order to achieve the optimal return some property loans sold to NAMA will be capable of being transferred into NAMA SPVs which will be capable of being worked out and disposed of in an orderly manner with private equity partners.
NAMA
The Government will capitalise NAMA with sufficient equity so as to undertake its business in an optimal manner.
State Aid
This document summarises the main elements of the NAMA initiative currently under consideration. The finalising of the design of the NAMA initiative will take full account of the Commission's Communication on the treatment of impaired assets, in particular with regard to transparency and disclosure of impairments, burden sharing, the valuation of assets and remuneration. |
