A report into the operations of Nama has recommended that the government should consider selling it off as a single entity.
The secret review was commissioned by the Nama board with the approval of the Irish Labour government that took power in March, and carried out by former HSBC chief executive Michael Geoghegan.
It has recommended that the entire agency, which was set up to buy and manage toxic property loans from five Irish banks, be put up for sale rather than follow its current strategy of selling off loans and property piecemeal.
According to the Financial Times, a sale could occur when Nama has made more progress in selling off loans.
It also recommends Nama consider changing the way it manages around €5bn in loans issued to 600 small developers.
The recovery of these loans is currently under the care of the issuing banks, rather than directly by Nama as it the case for the top 170 developers, whose loans are directly managed by the agency.
The review expresses concern that the banks have little incentive to manage the loan recovery process and it would be better off managed directly within Nama.
Geoghegan’s report also calls for more people with expertise in property to be brought onto Nama’s board and calls for a succession plan, in case chief executive Brendan McDonagh leaves the agency.
bridget.o’connell@estatesgazette.com
