It was May 2011 when the NAMA chairman and the NAMA CEO first mooted the proposal that NAMA would introduce a scheme which would allow it to sell residential property in Ireland with built-in protection against future price falls. The product was to be unveiled in Autumn 2011, then that slipped to Q4,2011 and the latest from the NAMA chairman is that it is expected to be launched at the end of March/start of April 2012 after receiving European Commission approval, largely with respect to competition issues.
In response to an enquiry asking for information from the Commission on the details of the NAMA scheme, the European Commission last week refused to disclose any NAMA documentation, on confidentiality grounds. The letter from the Commission – available here – states that NAMA did submit documentation in December 2011 and January 2012, which begs the question why it took so long – seven months after the first announcement in May 2011 – for NAMA to get around to seeking Commission approval. Furthermore the letter confirms that the Commission was still considering the NAMA proposal on 22nd February, 2012.
The enquiry was from an individual named Richard Ryan – nothing to do with this blog – and was made through the useful service asktheEU.org which allows citizens to seek information from EU organisations, including the ECB, with the website sending the request to the appropriate contact at the organisation, citing the law under which the information is sought. The refusal to provide the NAMA documentation may be appealed.
NAMA’s negative equity mortgage – referred to as a “Deferred Consideration Initiative” by the Commission – is controversial and has sparked concerns domestically that NAMA may get a competitive advantage in shifting its portfolio of underlying security in 10,000 residential properties.
Thanks for the update. I was starting to wonder if they had kicked to touch totally on the idea.
Just on your asktheEU.org. Presumably there continues to be numerous attempts to find the ‘threat letter’ by the ECB to Brian Lenihan regarding withdrawel of liquidity support for Irish banks.
@John F, no further attempts that I am aware of to access the letter of 19th November 2010 from former ECB president Jean-Claude Trichet to former Minister for Finance, the late Brian Lenihan.
http://namawinelake.wordpress.com/2012/01/09/ecb-refuses-to-hand-over-november-2010-threat-letter-sent-to-brian-lenihan/
Gavin Sheridan sought the letter and received the reply shown above. And I understand he has appealed the decision, but that the appeal too has been rejected.
Newspapers have sought the letter from the counterparty, the Irish Department of Finance, but the Freedom of Information requests were rejected also.
@NML
Thanks again. Are you aware of the grounds on which they were rejected.
I had 20 minutes to spare and so submitted a complaint via
http://www.ombudsman.europa.eu/home.faces
regarding the response provided to Gavin Sheridan by the ECB. Let me know if you know of the grounds on which the department of finance rejected any FOI request.
This is a really hot potato. IMO, it is impossible for NAMA to sustain an argument that their harebrained proposal to sell residential property in Ireland, with built-in protection against future price falls, complies with EU Competition Law.
@WSTT
Every individual seller in Ireland is disadvantaged by NAMA”s existence. How does that fit in with EU Competition Law, never mind the negative equity Ponzi scheme?
@RB, It doesn’t. It’s just that no-one has put together a reasoned Complaint to the Commission….. and NAMA gets away with it.