This afternoon, NAMA has issued a statement to clarify how it plans to manage its Irish Bank Resolution Corporation loans. Remember, NAMA had already acquired nearly €45bn of loans from what was Anglo and Irish Nationwide, and before the special liquidation of IBRC announced on 6th February 2013, NAMA managed the bigger of these loans in-house, but the smaller loans were managed by over 200 IBRC staff on IBRC premises. As a result of the special liquidation, NAMA is set to acquire further loans from IBRC – those loans which the special liquidator is unable to sell. This afternoon, we learn how NAMA is going to be managing all of these loans.
First up, in respect of the existing IBRC loans, NAMA is appointing our friends, Capita to directly manage the loans at IBRC. What this means is that NAMA is putting clear blue water between it and the IBRC staff managing these loans. Capita already provides loan administration services to NAMA in respect of IBRC loans so this announcement will just leave IBRC staff in no doubt that they are NOT employees of NAMA.
In respect of new IBRC loans that NAMA will take over, NAMA says that it will acquire these loans on a phased basis. Remember, we were previously given to understand NAMA would acquire these loans in one big hit in August 2013. Now the acquisition is being “phased” but we don’t know the start and end dates of the phasing.
NAMA is tendering for a provider of loan admin services this afternoon with a closing date at the end of April 2013. There will be two loan admin service providers, one for a portfolio of commercial loans and one for the IBRC mortgage loanbook. This is interesting and may indicate that the special liquidator, KPMG is shelving plans to sell the mortgage loanbook.
NAMA says that by the time the “transition of the new arrangements has fully completed later this year ”, at that time, “a significant number of relevant IBRC employees will be re-employed by one of NAMA, Capita or one of the two new loan admin service providers”. If I were a betting person, I would say that few IBRC staff will actually up at NAMA, and that they will face short term contracts at Capita or at one of the two new loan admin service providers.