NAMA – propaganda profit only in Grosvenor Square

Headline in Irish Independent – ” NAMA to pocket €150m profit on UK property deal”

Story in summary

20/21 Grosvenor Square in London bought for £250 million (€290 million)

NAMA took the loan off Irish Nationwide last year for about 50% discount.

However, NAMA paid fees etc top buy this discounted loan from Irish Nationwide which is now nationslised. So any “profit” for NAMA is only clearing out a debt which fell to the taxpayer. The hidden costs are unstated and liable to be considerable. So from a citizen’s viewpoint, it is clear that no real profit has been made and that the bank has been got off the pitch in relation to that particular loan.

Last week, NAMA disclosed that 70% of its loans are non-performing. It is planned to restructure some of these loans and with a lowered interest rate and a prolonged borrowing term.