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Arithmetic of Hope

NAMA has prepared a ‘draft business plan‘.

Or rather, the ‘interim NAMA team’ prepared a business plan, since the bill creating NAMA is not law yet.

The interim team thinks NAMA will make a profit of €5.48 billion by 2020.

It will do this while receiving €12 billion in interest, and paying out €16 billion in interest, and €2.64 billion in fees and expenses.

You’ll have noticed that’s a €6.64 billion loss.

NAMA plans to pay €54 billion for its debts, backed by collateral allegedly valued at €47 billion today.

NAMA expects developers to pay on these loans, or else sell their land at a profit.

Leaving that depressing arithmetic aside, there’s good news on job creation:

‘Over 2000 CVs have been received to date from a diverse range of applicants interested in joining NAMA. The NTMA HR unit has classified the CVs by
reference to the skill sets likely to be required by NAMA.’

‘Failure to attract high calibre staff would have a detrimental effect on NAMA in terms of how successfully it could achieve its statutory policy
objectives and in terms of its reputation as a commercial entity.’

Indeed.