NAMA pays €750m off Anglo promissory note debt

BAD bank NAMA has paid €750m to the Central Bank to settle debts originally owed by the bust former Anglo Irish Bank.
Last year the National Asset Management Agency (NAMA) “bought” a €12.93bn charge, or mortgage, over Anglo that was previously held by the Central Bank as security for emergency loans to the bank.

The deal was part of the wider scheme to scrap the notorious Anglo Irish Bank “promissory note”, with the sale following the appointment of a special liquidator to IBRC, the renamed Anglo.

NAMA paid for the charge over IBRC with a €12.93bn issue of senior bonds paid to the Central Bank. The deal allowed the Central Bank to replace debts owed by Anglo with the new bond asset on its balance sheet.

The charge over IBRC means that NAMA is effectively in line to scoop up the proceeds of the liquidation of that bank – and to use them to pay off the Central Bank.

Including the latest €750m redemption, NAMA has now redeemed €1.75bn of the original consideration.

IBRC special liquidators Kieran Wallace and Eamonn Richardson are coming to the end of the liquidation of loan assets with a notional value of €22bn. As well as being first in line for the proceeds of those sales, NAMA will be paid over any unsold IBRC assets at the end of the liquidation process.

Last month NAMA indicated that fewer of those loans than first thought are likely to transfer over. It re-issued a previously agreed tender for contracts to manage loans, on the basis that fewer loans and fewer big loans in particular will remain in state hands once the liquidation is complete.

Ultimately, NAMA will be reimbursed by the Exchequer if it receives less than the €12.93bn it paid to the Central Bank from the IBRC estate.