ANGLO HAS COMPLETED its second transfer of loans to the National Asset Management Agency. Almost €7bn was transferred to the state agency yesterday, at a whopping discount of 61.9%

The second tranche of loans from the five banks was given an average discount of 55.6%.

The average discount for Tranche 1 transfers was 50%. The increased discount indicates that the quality of the loans being taken by NAMA has deteriorated.

NAMA paid less for this round of loans, meaning that the banks have received a lot less money for them than they were originally worth. The knock-on effect of this is that taxpayers may be called on to keep the banks’ capitalisation at a certain level.

Figures show:

• While 66% of Tranche 1 loans were based in Ireland, that figure fell to 50% for Tranche 2
• 44% of Tranche 2 loans were based in the UK and Channel Islands
• 23% of Tranche 2 loans were secured against hotels, compared to 4% of Tranche 1
• Investment property accounted for 52% of Tranche 1 loans, and 43% of Tranche 2
• 44% of Anglo’s overall exposure has now been transferred to NAMA
• 34% of the overall exposure of the five banks has been transferred over

The price of Ireland’s debt also rose yesterday, reportedly on news of the cost of Anglo’s Tranche 2 loans.

The four other banks involved in transferring ‘bad loans’ to NAMA had completed their second tranche over a month ago.

Yesterday, NAMA said it had written to the chief executives of Irish banks, asking them to be quicker in providing the agency with details of the loans being taken over.

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