National Asset Management Agency begins transfer of loans from Anglo Irish

3 May 2010 – The National Asset Management Agency (NAMA) has begun the transfer of part of the first tranche of some €10 billion of loans from Anglo Irish Bank. The discount applied to Anglo’s first tranche is expected to be close to 55%, subject to additional data checks and foreign exchange rates at time of the final transfer. In order to reduce operational risk, the loans are being acquired in two phases. Over the past weekend, the Agency acquired loans with a nominal value of €4 billion. The transfer of the residual Anglo loans in the first tranche (some €6 billion) is expected to be completed next weekend.

Taking the €4 billion into account, loans with an aggregate nominal value of €10 billion have been acquired by NAMA from five institutions – AIB, Bank of Ireland, Anglo Irish Bank, Irish Nationwide and EBS. When the residual of Anglo’s first tranche is fully completed, the total transfer will be €16 billion and the overall discount is expected to be of the order of 49%.