Results 19,361-19,380 of 27,945 for speaker:Michael McGrath

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: Yes, okay. Can I move on to the issue of the enforceability of security because issues arose around that and were identified during the legal review and it made it necessary to impose legal discounts of €477 million, which is broken down on table 3, Vol. 2, page 5 of the book that we have. Can you give us an indication of the type of issues that would have arisen which necessitated...

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: Okay. And then subsequently, when you did acquire the loans, further issues emerged when you went into more detail assessing each loan and a total of €334 million of overpayments were identified that you had to get back from the banks.

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: How were those issues missed when you had the loan-by-loan review during the due diligence phase?

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: Okay. And you mentioned that that's to date?

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: Are there further issues that are being worked on-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: Okay. You mentioned in your opening statement, page 14, that in some cases NAMA acquired some loans for only 10% or less of their face value. Presumably that would have been development land in many cases, or land which was unzoned.

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: Speculative land. Do you know what the lowest percentage of face value that NAMA would have paid for any individual loan? Are we down into ... we're down into single digits, presumably, percentage wise?

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: Yes.

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: So, in some cases, a loan with a face value of €100 million, NAMA would have paid €5 million, proportionately?

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: Okay. Senator O'Keeffe spoke about the issue of the concentration of lending in the hands of a relatively small number of debtors and the figures show that 63 debtors accounted for €45.5 billion in par debtor, 61% of the total; 145 debtors accounted for 78% of the total, or €58 billion. In your experience, having gone in and looked at these loans and the practices of lending...

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: They were relatively new arrivals to property and construction?

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: Okay. Can I ask how much of the original €74 billion of par value of loans remains to be sold today by NAMA?

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: But in the context of the €74 billion-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: -----par value €47 billion to €48 billion?

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: Yes, there or thereabouts.

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: That sounds quite a high figure, given the huge level of activity that you had?

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: That you still have well over half of the loan book?

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: And what's the profile of what's left?

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: And what timeline are you working towards for the wind-up of NAMA?

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: By around 2020, is it?