EU approves NAMA Tranche 2 valuations

Whilst the folk down at Treasury Building steady themselves after yesterday’s announcements which will see their remit expanded by nearly 25% with Allied Irish Banks and Bank of Ireland €0-20m loans, there is at least some welcome good news from the European Commission which has today approved the valuations of NAMA’s second tranche of loans which was finally absorbed by the agency in August 2010. The EU said:

“The European Commission has authorised, under EU state aid rules, the transfer of the second 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 related to the exercise of certain specific rights conferred to NAMA so as to avoid undue distortions of competition. The Commission therefore concluded that the transfer of the second 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.”

No news on the remaining tranches which were to be subjected to estimated valuations pending detailed valuations to be completed by March 2011.