| Author (Corporate) | European Commission: DG Communication |
|---|---|
| Series Title | Press Release |
| Series Details | IP/18/445 (25.01.18) |
| Publication Date | 25/01/2018 |
| Content Type | News |
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Further information: The Commission found out that new loans to property developers are extended where it is commercially viable to do so. It also highlighted that State support to NAMA had already been approved under a decision from the European Commission in 2010. Finally, it was found that extending financing to certain property development projects where it is commercially viable to do so is in line with NAMA's objective to obtain the best possible financial return for the State. The Commission therefore concluded that NAMA did not breach EU State aid rules. Background information: NAMA was created by means of the NAMA Act of 22 November 2009. It acquired large portfolios of commercial (real estate) loans secured by land and development property from Anglo Irish Bank, Allied Irish Bank, Bank of Ireland, Irish Nationwide Building Society and Educational Building Society. The purchase of these assets was financed up to 95% by State-guaranteed bonds. The Commission approved the establishment of NAMA in its decision of 26 February 2010 and concluded that the aid that NAMA provided to the five credit institutions concerned was in line with EU State aid rules. The Commission relied on a number of commitments from the Irish authorities to ensure that NAMA's operations do not lead to distortions of competition through the use of certain powers, rights and exemptions granted in the NAMA Act. In December 2015, the Commission received a complaint from five property developers. They alleged that NAMA distorts competition in the Irish property development market by granting loans at very favourable conditions to property developers, which are existing creditors of NAMA. Furthermore, the complainants alleged that NAMA itself benefitted from various illegal State aid measures in Ireland, including a State guarantee on its funding. The European Commission concluded on 25 January 2018 that the Irish National Asset Management Agency (NAMA) did not breach EU State aid rules, following a complaint that it had benefited from illegal aid and been granted advantages to certain property developers. |
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| Source Link | http://europa.eu/rapid/press-release_IP-18-445_en.htm |
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| Subject Categories | Business and Industry, Internal Markets |
| Countries / Regions | Europe, Ireland |
