Have a quick read of Simon Carswell’s piece on NAMA in today’s Irish Times. Look at the detail – the first loans will now be transferred by 5th March 2010, the first amounts will be : “Allied Irish Banks is moving more than €3 billion in the first wave, Bank of Ireland over €2 billion, Irish Nationwide just shy of €1 billion and EBS building society about €150 million.”
Very detailed information and where does he get this insider information from? The last update from NAMA was about their senior appointments a couple of weeks ago and before that a statement in November 2009. NAMA is getting off to a very bad start where select media seem to know what’s going on ahead of politicians and the general property and financial markets to which NAMA is very important.
As with all complex transactions the devil is in the detail
Two points that immediately spring out of this article is the inbuilt reviews that include a claw back facility on possible overpayments
This will have consequences for the Banks balance sheets as this clearly implies a possible debt in the!
The second point is that the banks seem to be reluctant to give full details and are pressing NAMA “to reduce the level of information demanded by NAMA”
This cannot be allowed, under any circumstances
Indeed Macholz and the financial markets are not convinced NAMA is going to implemented in line with how the govt intended (mind you they don’t have solid information either way). Of concern to the banks and govt might be the prudent approach of the EU when valuing property (and take a look at the residential property markets in the big markets like Germany and France and you will see house prices at levels substantially below ours).
With respect to the detail demanded by NAMA (1000+ items of information per loan), NAMA must make sure they have correctly verified titles and indeed title insurance. A quick review of NAMA should take place after the first tranche is transferred. There may be efficiencies to be made but they should not be at the expense of putting our investment in jeopardy.
[…] 13, 2010 by namawinelake A couple of weeks ago I remarked in a blog entry here that apparent leaks from NAMA were damaging to the nascent reputation of one of the world’s […]