EU approves Tranche 1

News today that the EU has approved the transfer of the first tranche of loans to NAMA. The transfer of the first tranche was of course concluded on 10th May, 2010 so it would seem EU approval can take three months or so. This approval will of course be welcome news for NAMA.  Of note in the release is the statement “The Commission also continues to rely on the commitments of the Irish authorities to ensure that NAMA does not lead to undue distortions of competition”  – I wonder what the EU make of the increase in State-aid being paid to the banks via valuations of property by reference to the 30th November, 2009 when the evidence is that prices have continued to fall after this date. The full text of thepress release is

“The European Commission has authorised, under EU state aid rules, the transfer of the first tranche of assets to the Irish National Asset Management Agency (NAMA). The Commission found this transfer to be in line with the approved scheme (see IP/10/198) and with its guidance on the treatment of impaired assets (see IP/09/322). In particular, the transfer satisfies predefined transparency and disclosure requirements, the assets fulfil the criteria for participation in the scheme and their valuation complies with the requirements of the Commission’s guidance and results in adequate burden sharing. The Commission also continues to rely on the commitments of the Irish authorities to ensure that NAMA does not lead to undue distortions of competition. The Commission has therefore concluded that the transfer of the first tranche of assets to NAMA represents an appropriate means of remedying a serious disturbance in the Irish economy and as such is compatible with Article 107(3)(b) of the EU Treaty.”