National Asset Management Agency

National Asset
Management Agency
State Agency of the National Treasury Management Agency overview
Formed21 December 2009
JurisdictionIreland
HeadquartersTreasury Dock, North Wall Quay, Dublin
Employees200
Annual budget€240 million estimated cost per annum
State Agency of the National Treasury Management Agency executive
Key document
  • National Asset Management Agency Act, 2009
Websitewww.nama.ie

The National Asset Management Agency (NAMA; Irish: Gníomhaireacht Náisiúnta um Bhainistíocht Sócmhainní) is a body created by the government of Ireland in late 2009 in response to the Irish financial crisis and the deflation of the Irish property bubble.

NAMA functions as a bad bank, acquiring property development loans from Irish banks in return for government purple debts bonds, ostensibly with a view to improving the availability of credit in the Irish economy. The original book value of these loans was €77 billion (comprising €68bn for the original loans and €9bn rolled up interest), and the original asset values to which the loans related was €88bn, with there being an average Loan To Value of 77% and the current market value is estimated at €47 billion.[1][2] NAMA is controversial, with politicians (who were in opposition at the time of its formation)[3] and some economists criticising the approach,[4] including Nobel Prize-winning economist Joseph Stiglitz who has said that the Irish government is "squandering" public money with its plan to bail out the banks.[5][6]

One year after NAMA's establishment, the Irish government was compelled for other but similar reasons to seek a European Union-International Monetary Fund bailout in November 2010, the outcome of which will have considerable effects on NAMA's future operations.

Despite this early criticism, as of year end 2018, NAMA had recovered €37.4bn from its owned assets and projected that it would eventually generate a net surplus of €4bn.[7] And as of September 2021, NAMA had delivered a total surplus of €2.75bn to the Department of Finance, and projected that its final net surplus would be €4.65bn.[8]

  1. ^ "Nama to pay €54bn for bank loans of €77bn in rescue plan". The Irish Times. Dublin. 17 September 2009. ISSN 0791-5144. Archived from the original on 16 October 2011. Retrieved 26 September 2009.
  2. ^ "Zoe loan-to-value ratio 1.5 times Nama average". The Irish Times. Dublin. 23 September 2009. ISSN 0791-5144. Archived from the original on 20 October 2012. Retrieved 20 February 2020.
  3. ^ Edwards, Elaine (30 July 2009). "Opposition criticises Nama Bill". The Irish Times. Dublin. ISSN 0791-5144. Archived from the original on 11 May 2022. Retrieved 15 September 2009.
  4. ^ "Key economists criticising NAMA". Irish Independent. Dublin. 27 August 2009. ISSN 0021-1222. Archived from the original on 9 September 2009. Retrieved 15 September 2009.
  5. ^ "Government 'squandering' money in bank bailout plan". Irish Independent. Dublin. ISSN 0021-1222. Archived from the original on 1 February 2010. Retrieved 12 April 2018.
  6. ^ Fahy, Louisa; Meier, Simone (October 2009). "Nama is highway robbery". Sunday Business Post. Dublin. ISSN 0791-2617. Archived from the original on 5 June 2011. Retrieved 12 April 2018.
  7. ^ NAMA (17 July 2019). "Second Section 227 Review - 2014-2018" (PDF). nama.ie. Archived (PDF) from the original on 22 October 2021. Retrieved 14 October 2021.
  8. ^ O'Brien, Ciara (30 September 2021). "Exchequer Gets Additional €250m from Nama". The Irish Times. Dublin. ISSN 0791-5144. Archived from the original on 30 September 2021. Retrieved 14 October 2021.