INTEREST PAYMENTS:NAMA INTERIM chief Brendan McDonagh said the income stream from loan assets transferred into the new agency will be sufficient to meet interest payments on bonds issued to participating banks and building societies to buy their loan assets.
While loans worth up to €90 billion will be acquired, the value of the bonds required to buy them will be dictated by the scale of the price discount that will apply.
“We’re quite confident that the interest generated on the loans will be sufficient to repay the coupon on the bonds,” Mr McDonagh said.
The principal bond sums will be repaid as Nama sells off assets. It will pay a floating rate of interest on any bond securities it issues to buy the loans.
About half of all the loans that Nama expects to acquire are classified as “performing loans”.
