Ireland's 'bad bank' to see balance sheet swell on Anglo assets
DUBLIN Feb 21 (Reuters) - Ireland's state-run National Asset Management Agency (NAMA) could see its balance sheet grow by close to 50 percent as a result of taking over the assets of the liquidated former Anglo Irish Bank, its chairman said on Thursday.
Ireland's government rushed through emergency legislation earlier this month to liquidate the failed Anglo Irish as part of a key deal struck with the European Central Bank to ease the country's debt burden.
NAMA chairman Frank Daly said the agency would not have much visibility on the portfolio it is due to take over until Anglo's special liquidator completes a valuation and sale on the loans in late August.
"This new portfolio will significantly increase NAMA's workload," Daly said in a speech. "Potentially, depending on the scale of loan transfers, the size of our balance sheet could increase by close to 50 percent."
"The prospective acquisition of the residual IBRC portfolio represents a major challenge for NAMA. As with our original portfolio, we will be guided in that challenge by our primary commercial objective - which is to obtain the best achievable return for the Irish taxpayer."
NAMA, created in 2009 to purge Irish banks of some 74 billion euros ($99 billion) of risky property-related loans, has generated 11 billion euros from asset disposals and other income since its inception, Daly added.
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