The remaining €19 billion worth of property loans given by Anglo Irish Bank are due to transfer to Nama over the next two weeks, Department of Finance officials said today.
Senior civil servant Ann Nolan told the Dáil’s Public Accounts Committee today the bank will start transferring the loans to Nama this weekend. The process would take about a fortnight to complete.
Anglo is due to transfer a total of €19 billion worth of property loans to the agency, which will buy them at a 67 per cent discount, implying that it will pay around €6.3 billion for the loans.
Department of Finance secretary general Kevin Cardiff said the promissory notes being used to recapitalise Anglo, the EBS and Irish Nationwide will result in the State borrowing about €3 billion a year for 10 years.
The cost of recapitalising Anglo Irish stands at €29.3 billion, although Mr Cardiff reiterated that a worst-case scenario would require a further €5 billion.
Irish Nationwide will need €5.4 billion.
Mr Cardiff defended the use of advisers such as lawyers Arthur Cox and merchant bank Merrill Lynch as the Republic’s financial crisis unfolded in 2008.
Taxpayers forked out a total of €36 million for the aid provided by these and other firms, even though some committee members argued that it chose not to take the advice in the end.
Mr Cardiff argued that the quality of the advice was very high.
