National Asset Management Agency


Re: National Asset Management Agency

Postby gunter » Thu Apr 15, 2010 1:02 pm

There was some talk on the radio this morning of Cuffe setting up a ''Planning sub-committee of NAMA'', anyone got any hard info on that?

Sounds like exactly the what's needed. Does he have the power?
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Re: National Asset Management Agency

Postby PVC King » Thu Apr 15, 2010 3:27 pm

Nama as enacted gives virtual control to the Minister for Finance; assuming that Cuffe has or can secure cabinet backing and that the EU Commission have no objections then there is nothing to prevent it from being established. Given the shelf life of the current government is about two years I can't see them establishing anything that would exclude the ability of back bench TD's going to their constituency saying that NAMA will fund development of the local commercial development and that a week after the election 3,000 jobs for locals only will be created!!!!. Planning may just get in the way of such campaigning; although ranking projects with planning as well as demand analysis as the major determinates would be very prudent.
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Re: National Asset Management Agency

Postby Paul Clerkin » Thu Apr 15, 2010 3:52 pm

It's more developing a plan for the ghost estates I believe
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Re: National Asset Management Agency

Postby PVC King » Thu Apr 15, 2010 4:04 pm

That is certainly the context in which it was raised but as there are likely to be few estates demolished and that most of those estates are likely to the small number of semi built suburban scale estates tacked onto villages in the border counties, you would wonder why he raised the issue other than to fly a kite for a wider role for planners in the overall process.

The return to original land use is a major issue in the Mid West US from what I have read where large tracts of land had services put in waiting for phased development and that land funds are now buying them and returning them to agricultural and alternative fuel production uses.
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Re: National Asset Management Agency

Postby gunter » Thu Apr 22, 2010 1:13 pm

The principle of perception versus reality in the resolution of economic difficulties.

Given that it appears that many foreign economic commentators seem to be mightily impressed with the whole NAMA thing despite the fact that we now apparently have the highest national deficit in Europe, and given that it appears that countries just have to be perceived to be sorting out their economic problems, rather than actually making them go away, should we not be applying these principles with a bit more industry.

Could we not just announce a major oil find off Dalkey, whether there's anything there or not, and watch as our borrowing costs drop through the floor on a wave of positive sentiment, thus stimulating an actual recovery in the national balance sheet. We could probably then even afford to buy a few barrels of oil that we could casually leave lying around in Bullock Harbour just in case anyone came to check.

On the 'Ghost Estates', here we could use the 'Good Bank / Bad Bank' concept and transfer all the half-built estates to just one county [probably any county beginning with 'L' would get picked] and swiftly clean up the rest of the country.

Again we wouldn't necessarily have to do this in reality, we could just photo-shop the aerial views.

In a couple of months we could be back on our feet again, virtually :rolleyes:
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Re: National Asset Management Agency

Postby PVC King » Thu Apr 22, 2010 8:54 pm

Coincidentally I actually thought today about the Bullock prospect that Providence are working at the moment; my thoughts turned straight to Rambo and the damage he did in 1993 in the last major downturn; once you grant the prospect on soft terms the holder can do some very basic work and sit on it until the market turns the right way as was the case with the Corrib field; truth is we are well beyond peak oil and anyone who grants cheap licenses for all but a very shortly capped development period is commiting political suicide. Not having a go at providence as the backers have a great track record of supporting indigenous businesses that employed thousands of Irish residents over the years but you get one shot at natural resources and then you are hostage to people like Hugo Chavez or worse Iran.

I get the feeling that Nama are concentrating on the larger commercial assets at this point in time for example Parkway in Limerick which has got some juicy agreement for leases i.e. Primani and Tesco which have long stop dates which will expire if not acted upon. No doubt when the more modest loans transfer the ghost estates will be looked at; the one serious silver lining is that Bank of Scotland were the real frontier trail blazers when it came to funding 100 houses in Ballyshannon or other border county locations and they are not in Nama. That said LLOY is in my portfoilio and is making exceptional progress with its UK loan book; topping up my holding in late February was a very good move. The real problem in Irish banking was the entry of HBoS to Ireland and their aggressive grab for market share they made that resulted in 2.50% interest rates; thankfully they have no exited the market and as a result more sustainable margins now prevail which should to make sure that this doesn't happen again.
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Re: National Asset Management Agency

Postby KerryBog2 » Mon Apr 26, 2010 9:22 am

gunter wrote:Could we not just announce a major oil find off Dalkey, whether there's anything there or not, and watch as our borrowing costs drop through the floor on a wave of positive sentiment, thus stimulating an actual recovery in the national balance sheet. We could probably then even afford to buy a few barrels of oil that we could casually leave lying around in Bullock Harbour just in case anyone came to check.

Great solution Gunter:)
The only bit of unreality is that Providence = O'Reilly & cronies = Waterford Glass, Indo, Fitzwilton, Crean and Atlantic Resources.
Now, would you put your money there? :eek::eek:
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Re: National Asset Management Agency

Postby PVC King » Mon Apr 26, 2010 12:34 pm

Providence brings in Baltimore partner
Monday, 26 April 2010 10:23
Exploration company Providence Exploration says it has agreed a farm-out deal to advance its Baltimore heavy oil discovery, off the coast of Ireland.

UK independent oil and gas firm Nautical Petroleum will acquire a 40% interest in the licence in return for funding a development feasibility review. Providence retains the balancing 60%.

The deal for the site in the North Celtic Sea Basin is subject to approval from the Government.


Nautical is currently involved in a number of similar heavy oil field developments in the UK North Sea including the Kraken discovery and Mariner, which is operated by Statoil.


As requested - one oil find!!!!!
KB - The general view on Sir Anthony has been he invests when others won't; he and his brother in law took some hit trying to save Waterford Wedgewood; anything but Crony capitalism or the firm would have been well naked before the downturn hit.
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Re: National Asset Management Agency

Postby KerryBog2 » Mon Apr 26, 2010 6:52 pm

PVC King wrote:As requested - one oil find!!!!!
KB - The general view on Sir Anthony has been he invests when others won't; he and his brother in law took some hit trying to save Waterford Wedgewood; anything but Crony capitalism or the firm would have been well naked before the downturn hit.


The shareholders got nothing, that is naked enough for me. I've spoken about this before here, so I won't bother:mad:
That oil find is old hat. Back in the days of Atlantic I remember serious talk of strong oil prospects at the Kish Bank. The late Don Sheridan, onetime CEO of Atlantic spoke of it. The Dalkey field would be more appropriately named the Codling, as it is way to the South East of Dalkey Island and also south of the Kish bank. Wouldn't sell papers though, not when you would not get to mention Bono & co and the prospect of roughnecks in "affluent suburbs."
It will be interesting to see what happens when the windfarms planned for out there are launched
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Re: National Asset Management Agency

Postby PVC King » Thu Apr 29, 2010 9:25 am

KerryBog2 wrote:The shareholders got nothing,



Those are the risks with equity investment; but the largest losses were suffered by the parties to you refer; it was far from a penny stock for a long time.
FORMER CELTIC TIGERS' BORROWING COSTS HIT BY GREEK DEFAULT FEARS - The injustice of it all! As fears of a Greek default escalate, Ireland's 10-year borrowing cost rose above 5% on Wednesday, a 2 percentage point premium over German Bunds. In its influential Lex column, the Financial Times says that Irish finance minister Brian Lenihan has led the way among ailing peripheral euro zone economies in taking the harsh fiscal measures needed to regain investor confidence. He set the example months ago that Athens should follow now, slashing public servants' salaries, and welfare payments. Investors rewarded him: the yield spread over Bunds narrowed. Now Dublin has given up those gains as Greece, the European Commission and the International Monetary Fund fail to agree on similar draconian measures for Athens. Ireland is no saint, the column says. Like other peripheral economies it became uncompetitive, paying itself too much and producing too little. And unfettered bank lending and limp regulation during its property boom brought deep recession when the bubble burst. The 12.5% contraction in Ireland's gross domestic product since the end of 2007 is the euro zone's worst. Output could shrink 1.3% this year. Furthermore, Ireland's budget deficit, at 14.3% of GDP, is higher than Greece's. But Ireland is not in the same league as Greece: the former Celtic Tiger has a credible recovery plan and has bounced back before.


Unlike many sections of the UK media you can always depend on Lex to stick to the underlying numbers.

NAMA GIVES FIRST CASH TO DEVELOPERS - NAMA, the toxic loans agency, has extended its first-ever funding to the country's developers as they struggle to finish projects around the country, says the Irish Independent. The agency declined to name the developers who received the capital or the amounts they received. "NAMA has provided small amounts of urgently needed working capital to support a number of projects to date,'' said a statement from the agency. A number of developers are now expected to seek permission from NAMA to roll over huge debts in the next few weeks. NAMA said yesterday it would decide on these when staff review the business plans of the developers. It is likely that major developers will now be forced to sell unprofitable or underperforming assets, following a review of their business plans. While NAMA is anxious to avoid a fire-sale of development land, trophy assets which are in the red are under scrutiny. Some of the top 10 developers have had business plans sent back because they are not judged to be realistic enough. However a number of plans are still outstanding. They disclose huge indebtedness and extensive breaches of loan covenants.


Watch this space going forward, one hopes to see a firm hand and a disciplined and patient investment approach.
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Re: National Asset Management Agency

Postby missarchi » Mon May 03, 2010 10:41 am

a system designed to fail...
what ever happened to average Joe...

http://www.nytimes.com/interactive/2010/05/02/weekinreview/02marsh.html?ref=weekinreview
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Re: National Asset Management Agency

Postby PVC King » Mon May 03, 2010 6:49 pm

Are you not going to break down the figures between; Domestic banks, Government, Consumer, secured on PPR, foreign direct investors and non-dom funds?
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Re: National Asset Management Agency

Postby missarchi » Tue May 04, 2010 10:02 am

PVC King wrote:Are you not going to break down the figures between; Domestic banks, Government, Consumer, secured on PPR, foreign direct investors and non-dom funds?


It's all controlled by the same people isn't it? over to you...
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Re: NAMA warning for 'extravagant' borrowers

Postby PVC King » Wed May 05, 2010 1:44 pm

NAMA warning for 'extravagant' borrowers
Wednesday, 5 May 2010 13:23
The chairman of the National Asset Management Agency has warned that no borrower is too big to fail.

Speaking to the Chartered Accountants Leinster Society, Frank Daly, said many borrowers had not yet abandoned the extravagant mindset of the 2003 to 2007 era.

By now, NAMA has held face-to-face meetings with the top ten developers or their representatives. These are being asked to submit detailed business plans to the agency soon. Mr Daly said NAMA would approach these plans with a sense of realism - about property over-supply, prices and the prospective demand for developments.

AdvertisementNAMA has almost completed the transfer of the first batch of loans from the banks. The discount on these loans will be 51%.

The NAMA chairman today said there were a large number of borrowers who owed between €5m and 420m who were not professional property developers.

'It is very difficult to understand how borrowers on relatively modest incomes could have been advanced large sums of money to invest in undeveloped sites in unpromising locations,' he said. Mr Daly added that there were questions to be asked about the way banks were run in allowing this type of lending to take place.

Mr Daly also raised big questions about Ireland's planning process in the past. He asked how many shopping centres or apartment developments could a medium-sized town accommodate?

He also said one of the more baffling features of the boom was that banks seemed oblivious to other lenders who were financing similar developments in the same area.

Mr Daly also defended the cost of professional services used by NAMA, describing it as 'low' and adding that the cost of these services would be recouped from the banks.


Any thoughts?
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Re: National Asset Management Agency

Postby wearnicehats » Wed May 05, 2010 1:56 pm

I'm totally bored of it all, I don't care any more, I'm sick to death listening to it - more volcanoes, more volcanoes
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Re: National Asset Management Agency

Postby PVC King » Wed Jul 14, 2010 7:17 am

Bank costs to swell deficit - ESRI
Wednesday, 14 July 2010 07:00
The Economic and Social Research Institute says the cost of providing extra capital to Anglo Irish Bank and Irish Nationwide will have to be included in the national accounts, and will push the government deficit from 11.5% to 19.75% of economic output - by far the highest in the developed world.

The ESRI also says money to tackle long-tern unemployment is better spent on training schemes than on building infrastructure.

In its latest quarterly survey of the Irish economy, the ESRI sees little difference to its previous outlook, with the economy broadly flat this year and modest growth next year.

But what has changed is the announcement in March of E12.9 billion of extra capital for Anglo Irish Bank and Irish Nationwide. This injection is by way of promissory note - a type of IOU under which cash can be drawn down over a ten-year period as the institutions require.

The ESRI believes the EU statistics agency Eurostat and other international bodies will want that liability written into the national accounts in full this year. That would have the effect of increasing the government deficit from the department of finance target of 11.5% to almost 20%.

The ESRI also cautions against using infrastructure spending as a job creation mechanism, saying its research suggests that money is better spent on improving workers' skills through training programmes for long-term sustainable results.


Time to look at a bad bank split for Anglo; it is ludicrous that Anglo bonds are trading as junk and yet the government continues to pump new money in with a presumption that all bond holders will receive 100% of their money.

With NAMA the main banks such as AIB and BOI took significant write downs on the value of their property loans; why shouldn't the bond investors who are now buying these bonds well below face value not face same as opposed to tax payers being burdened with paying for their short term profit the majority of which accrue only well after the crash resulting in taxpayers paying for this for decades to come. As BOI and AIB are now perceived to have made significant progress the downside risks appear dramatically reduced. A Nigerian Oil Field is very indicative of the approach to risk...............
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