Although the first tranche of NAMA loans from AIB attracted a 42.25% haircut, it has emerged in today’s Independent that the Financial Regulator, Matthew Elderfield has directed the bank to plan for a 45% haircut overall when demonstrating how it will meet new capital rules by the end of this year.
Given that AIB transferred €3.29bn of gross loans in tranche 1 and was expected to transfer €23bn overall, this would indicate a haircut on remaining tranches (including tranche 2) of 45.5%. Of course the Regulator might be just being prudent – time will tell.
Separately, last week in the Irish Times, Simon Carswell said that the Financial Regulator has put on hold the need for Anglo and INBS to produce capital plans pending the outcome of a review of restructuring plans for those two institutions at EU level.
NAMA Wine Lake 