NAMA to repay final portion of Government backed senior debt

The agency has cleared more than €30bn in government-backed debt since 2010

NAMA to repay final portion of Government backed senior debt

The National Asset Management Agency | Image:

NAMA will pay off the final portion of debt guaranteed by the Government three years ahead of time.

The state's ‘bad bank’ will repay the final €500m of its senior debt later this month.

It will mean the agency will have cleared more than €30bn in government-backed debts since 2010.

As a result it remains on target to close its doors in 2020.

The €30.2bn in senior bonds was used to purchase property loans from Irish banks in the wake of the financial crisis.

Lifting the debt burden could free up the agency to make greater use of funds it receives from its continuing sale of assets – with a portfolio worth as much as €4bn remaining to be sold.

Newstalk's business editor Vincent Wall said the repayment is great news:

“It was felt that they would eventually be paid off, all going well, with the sale of assets by NAMA by 2020; but they are actually going to make the final repayment on those senior debts, the €30.2bn in senior bonds, within the next two weeks - three years ahead of schedule, which is good,” he said.

“It was expected but they have now confirmed it is going to happen in October.”

NAMA chairman Frank Daly said the agency has now delivered on its “core objective,” claiming that was something “many people thought unachievable at the outset.”