NAMA could finish selling off assets by 2017
In its 2015 policy statement, the State bad bank said it was now on course to complete much of its business by the end of 2017 or mid-2018.
As recently as July Nama was forecasting it would have completed most of its work by the end of 2018 but the ongoing improvement in the property market has spurred a shorter deadline.
“Based on its analysis of the residual portfolio and on the assumption that the improved Irish market conditions can be sustained into 2015 and 2016, the board is confident that it will be in a position to redeem in full the senior and subordinated debt and that it may, potentially, be in a position to generate a surplus,” Nama said.
“The board’s current best estimate is that Nama can expect to complete much of its work by end-2017 or mid-2018,” it added.
Nama has sharply increased the rate at which it is selling assets this year as it looks to take advantage of the international appetite for Irish assets.
The bank originally planned to have redeemed by the end of 2016 only 50pc of the “Nama bonds” it doled out when it took on loans from the banks, but that target has since been increased 80pc on the back of the quicker than expected recovery.
Despite fears of a Nama “brain drain”, the agency actually increased its headcount during 2014.
Nama chairman Frank Daly warned TDs earlier this year that his agency needed a retention plan to encourage staff to stay.
Yesterday’s statement though shows the agency expects to employ 375 people outside the executive team by year end – an increase of more than 17pc year on year.
Employment levels have increased across the business. The asset recovery, asset management, legal and the chief financial officer departments all show higher staff numbers compared to the end of 2013.
The only department that is now smaller is strategy and communications, which had its level reduced by just one person.
Overall, Nama reported a loss of €88.2m for the second quarter of the year. The agency took an impairment charge on loans and receivables of €56.9m for the period.
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