Welcome to the Reuters.com BETA. Read our Editor's note on how we're helping professionals make smart decisions.
Skip to main content

Europe

Irish 'bad bank' NAMA raises forecast surplus to 4.25 bln euros

2 minute read

DUBLIN, June 10 (Reuters) - Ireland's state-run "bad bank", the National Asset Management Agency (NAMA), on Thursday forecast it would post a lifetime surplus of 4.25 billion euros, up from its previous estimate that it would boost the government's coffers by 4 billion euros.

Seen as a major liability for Dublin's finances when it was established in 2009 during a crash that cut property values in half, NAMA has since ridden a surge in demand for Irish real estate.

NAMA used 32 billion euros of senior and junior debt to rid local banks of 74 billion worth of risky property loans and in 2017 redeemed the final tranche of government-guaranteed senior debt three years ahead of schedule.

NAMA has already paid 2.2 billion euros of the projected surplus to the state and said this would increase to 3 billion by the end of 2021, with the remaining 1.25 billion due in the coming years.

In its annual report published on Thursday, the bad bank said its deleveraging programme was 97% complete at the end of last year. The agency also said it has funded or facilitated the delivery of 20,000 homes.

Reporting by Conor Humphries; Editing by Padraic Halpin and Alex Richardson

Our Standards: The Thomson Reuters Trust Principles.

More from Reuters