DUBLIN, March 14 (Reuters) - Ireland’s state-run National Asset Management Agency (NAMA) needs an additional 4 billion euros ($5.21 billion) of property sales by the end of 2013 to meet a target under the country’s EU-IMF bailout, said the agency’s chief executive on Wednesday.
Created to purge Irish banks of 74 billion euros of risky land and development loans, the so-called “bad bank” is one of the world’s largest property groups. It has approved sales of over 7 billion euros and has over 6.6 billion euros in cashflow.
“To pay off 7.5 billion (euros) of our debt we’ll have to have sales of just over 9 billion, so we probably have about 4 billion of sales to do between now and the end of 2013,” CEO Brendan McDonagh told a parliamentary committee.
The agency, which has been accused by the opposition of being too soft on the country’s developers and for not doing enough to help taxpayers, said in a statement it had invested 500 million euros into the Irish economy by funding the completion of unfinished projects.
Of 150 commercial tenants who have asked for cuts to boom-time rents, NAMA has approved 120, McDonagh said.
McDonagh said NAMA is earning 80 percent of its cashflow from the United Kingdom, whose property market is far more buoyant than Ireland‘s.
In a bid to boost sales, the agency is offering vendor finance of up to 70 percent of the value of properties, charging a minimum margin of 2.5 percent. It is about to begin sales of loans rather than just properties, the agency said in a statement.
The agency manages most of its loans directly, but around 5 billion smaller loans are managed by Irish banks on NAMA’s behalf.
The agency is to appoint a team of 15 people to supervise the management of those loans from within the banks’ offices, McDonagh said. ($1 = 0.7677 euros) (Reporting by Conor Humphries; editing by Lorraine Turner)