The first tranche of loans has now been transferred to NAMA from all but one of the participating institutions. I am informed by NAMA that they intend to transfer the first tranche of Anglo loans over the next two weeks- commencing this coming weekend.
The nominal value of loans already transferred from four institutions in tranche 1 is €6 billion; the total consideration paid for these loans by NAMA is €3,538 million of which €3,361 million (95%) is Government guaranteed bonds and €177 million is subordinated bonds. The nominal value of loans to be transferred in Tranche 1 from Anglo is of the order of €10 billion. NAMA stated on 30th March 2010 that the average discount on these loans has been estimated at approximately 50%. Early indications suggest that this discount may be somewhat higher however; NAMA will not have the final average discount on these Anglo tranche 1 loans until the transfer is complete. The higher the discount on loans, the less NAMA will pay to acquire the loans.
Section 55 provides that NAMA will submit quarterly reports to me and these will provide detailed information on the loans including, amongst other details, the number of loans outstanding, the number of loans foreclosed, sums recovered from property sales in the relevant quarter and an abridged balance sheet of the assets and liabilities of NAMA and each NAMA group entity. The first quarterly report shall be submitted to me on or before 30 June 2010 and I will arrange for copies of these reports to be laid before each House of the Oireachtas.