Nama warns of action against 11 top borrowers

THE NATIONAL Asset Management Agency has warned that it may take enforcement action against 11 of the top 30 borrowers whose loans have transferred to the agency.

Nama chairman Frank Daly said while 30 business plans representing some €27 billion or 40 per cent of the loans acquired by Nama had been reviewed, negotiations were still under way in relation to 11 of them.

“It is likely that enforcement action will follow for some of those in negotiation, as some debtors are making little effort to progress matters and have not yet adapted to the new realities some three- and-a-half years after the property market collapsed,” he told the Licensed Vintners Association agm.

Nama expects to review 145 business plans this year. To date the agency has acquired the property loans of about 850 debtors. The loans relating to the largest 175 debtors will be managed directly by Nama, with the remainder managed by the various financial institutions under special delegated authority.

Mr Daly confirmed Nama had appointed receivers in 41 cases to date. However, he stressed Nama’s involvement in the hotel sector had been overstated, saying the agency had “no interest” in supporting zombie hotels.

To date, Nama has acquired loans relating to 83 hotels – approximately 10 per cent of the total in Ireland. Thirty of these are in Dublin, 24 in Leinster excluding Dublin, 17 in Munster, nine in Connaught and three are in Ulster.

Mr Daly said that most of the so-called predatory pricing in the market was being driven by non-Nama hotels. “If debtors cannot demonstrate that their hotel businesses are viable, Nama has no intention of pouring taxpayers’ money into black holes.”