DUBLIN (Reuters) – Ireland’s state-run “bad bank” on Thursday said it remained on course to return a 4.5 billion euro surplus to the state by the time it winds down at the end of 2025 following a more than decade long sale of loan portfolios and assets.
Set up in 2009, the National Asset Management Agency (NAMA) used 32 billion euros ($35.10 billion) of debt to rid banks of 74 billion euros worth of risky property loans following a banking collapse. It ranked as one of the world’s largest property groups at that time.
The Irish government also had to pour tens of billions of euros more into the country’s ailing banks, some of which still collapsed.
NAMA had raised its forecast surplus almost every year since 2015 following a surge in demand for Irish real estate. Chief Executive Brendan McDonagh said he hoped it can go a bit higher than the 4.5 billion euro forecast by the time its work is complete, mainly from cash it is holding reserve.
It had a residual portfolio worth 500 million euros at the end of 2022, its annual report published on Thursday said.
The agency, which was also mandated in 2015 to help tackle an ongoing housing supply shortage in Ireland, said it had facilitated or funded close to 30,000 homes by the end of March, with another 850 units under or nearing construction.
McDonagh added that 400 apartments from the 1,800 units NAMA had funding approved a year ago fell through after demand from investors in the private rented sector “almost disappeared” in the rising interest rate environment.
NAMA said it had identified scope to provide some 17,000 more homes on land held by its debtors but only if they are commercially viable.
($1 = 0.9117 euros)
(Reporting by Padraic Halpin. Editing by Jane Merriman)