Tuesday, March 30, 2010

Irish banks may require up to €32 billion

by Calculated Risk on 3/30/2010 02:28:00 PM

From the IrishTimes.com: Irish banks may require up to €32 billion to cover losses

Irish banks may require up to €32 billion to cover the losses from bad property loans transferred to the National Asset Management Agency (Nama), it has emerged.

The true scale of the “black hole” left in the sector by toxic property debt was laid bare today as Nama confirmed the initial tranche of bad loans would be acquired at a discount of 47 per cent, substantially more than the Government’s initial estimate of 30 per cent.
And all the details from the Minister for Finance.

 Book value of amounts transferred in Tranche 1Price paid by NAMA for tranche 1Haircut
AIB€3.29€1.8843%
BOI€1.93€1.2635%
Anglo€10.00€5.00(1)50%
INBS€0.67€0.2858%
EBS€0.14€0.0936%

(1) Estimate; every 1% increase in haircut reduces price paid by NAMA for
tranche 1 by €100m