UPDATE: 28th October, 2010. The word on the street is that the remaining Anglo loans will transfer this coming weekend so that by 1st November, 2010, “Anglo will be complete”. The haircut is likely to be 67% but it seems that NAMA will be upfront about that haircut being subject to a final valuation which can take place in the following 12 months. There has been a suggestion that there may be an additional term of the transfer which is not set out in the NAMA Act and that is that loan valuations may be revisited by either side if they turn out to have been significantly inaccurate (might have been useful if Anglo had such a clause on the loan securing the South Audley Square car park!)
21st October, 2010. Before the Oireachtas Public Accounts Committee today, Anne Nolan one of the architects of NAMA and presently Assistant Secrtary at the Department of Finance and Department of Finance secretary general Kevin Cardiff said that Anglo will start transferring its final tranche this weekend and the transfers should be complete in “next two weeks” – is that 5th November, 2010 and is it the first sign in slippage of the transfer timetable that had foreseen the completion of the Anglo transfer by the end of October 2010. The haircut is still being discussed at 67% and the par value of the loans is still €19bn apparently.
In his statement on 30th September, 2010 Minister for Finance Brian Lenihan referred to the remaining Anglo loans as being €19bn – “This review has enabled NAMA to determine and advise the Central Bank of the expected discount of 67% on the remaining €19bn. of the bank’s loans that are due to be transferred”
The €19bn appears to have taken account of some sales of UK and US loans flagged in the Anglo Interim Report published in August 2010. There may be more. The €19bn would appear to include Paddy McKillen’s loans, and of course Paddy is challenging the State in the High Court from Tuesday 5th October 2010, his challenge being that the State is not entitled to transfer his loans to NAMA. If Paddy is successful then the €19bn may be subject to further reduction.
The 67% haircut compares with a 55% haircut on €9.25bn of loans in Tranche 1 and a haircut of 62% on €6.75bn of loans in Tranche 2. Some reporting suggests it is on the high side.
NAMA Wine Lake 
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