NAMA registers losses of 9 million euros during the first six months of 2020



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The National Asset Management Agency (NAMA) posted a loss of 9 million euros during the first six months of this year, according to its latest quarterly report.

The agency recorded a loss of € 49 between January and March, but it was reduced by a profit of € 40 during the following three months.

In total, the organization generated a cash of 326 million euros in the semester.

Another 100 million euros were generated between the end of June and September.

As a result, the agency has produced more than € 45.7 billion in cash since it was first created in 2009.

As of the end of September, a total of 12,035 residential units had been delivered through direct financing from NAMA, with a further 5,647 built on land sold or refinanced by the NAMA.

Another 8,258 units are currently under construction or have planning permission, and 8,517 more in the planning process.

Earlier this year, NAMA paid € 2 billion to the treasury, in the first transfer of its projected life surplus.

Another € 2 billion is expected to be transferred over the course of 2021 and 2022.

Created to deal with banks’ bad debts after the financial crisis, NAMA has now achieved its main business objective of redeeming all of its € 31.8 billion of debt liabilities.

The agency says that next year its activities will focus primarily on intensive management of its remaining loans and secured assets and on maximizing the income to be derived from them.

This will include the Dublin Docklands Strategic Development Zone (SDZ) and Poolbeg West SDZ.

But the agency warned that significant market disruption and uncertainty caused by Covid-19 has created a more challenging economic environment.

It says that if market conditions allow, it expects to complete much of its work by 2021 or 2022, including most of its deleveraging program, its Dublin Docklands SDZ program and its financing of residential development projects.

However, it cautioned that if economic and market conditions deteriorate further, some projected outflows and asset or loan sales may not materialize according to its projections.

The likely consequence of this is that it could be left with a larger residual portfolio by the end of 2021 than the currently forecast € 300 million, he says.



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