# NAMA May Be Facing Cash Flow Crisis



## Lightning (25 Oct 2010)

A very well researched blog post, by NAMA Wine Lake, raises some frightening but very valid points with regard to the current liquidity position at NAMA: 

http://namawinelake.wordpress.com/2...-nama-report-that-was-due-nearly-a-month-ago/



> It came as a surprise to many that in May 2010, NAMA needed a €250m “working capital advance” repayable in October 2010. A surprise because NAMA already had €100m of capital (€51m from the “independent” private sector and €49m from the State) and also NAMA had taken over €16bn of loans and at least a third were supposed to be performing. Anyway, a €250m advance was provided by the Minister for Finance and was revealed in the Dail a day before it was disclosed in the May 2010 Exchequer statement. Today NAMA has less than a week to repay the €250m. This entry examines the likelihood of that happening, the probability of another bail-out (or “working capital buffer advance” in the language of Upper Merrion Street). The entry again asks about NAMA’s quarterly report and accounts which was due by the end of September 2010 (relating to the second quarter to 30th June 2010) – why is there a delay and is the delay due to the consideration of any excision from the report?
> 
> I believe NAMA is facing a liquidity crisis – remember that term from the banking crisis? It’s supposed to refer to a situation where NAMA is due cash (either in interest or capital or from its euro paper programme) but can’t actually lay its hands on the readies, and meanwhile there are developers pleading for working capital and indeed salaries around the €200k per annum mark if you believe some of yesterday’s newspaper reporting. The reasons I believe NAMA is facing a liquidity crisis are as follows:


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## tiger (25 Oct 2010)

Maybe someone should send this to the likes of Willie O'Dea, Frank Fahey & the other NAMA appologists who were trying to sell us the idea that NAMA would make a profit


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## Shawady (26 Oct 2010)

No fan of NAMA but at least some of the UK stock may turn a profit.

http://www.independent.ie/business/irish/nama-makes-euro140m-profit-on-anglo-loan-deal-2394084.html


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## shanegl (26 Oct 2010)

I don't believe a word of it. I was assured that NAMA would wash its own face.


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## tiger (27 Oct 2010)

I think NAMA will "wash it's face" for a few years, while they're still only making interest payments on the loans and they sell off the best assets.  I suspect in 3-5 years time (i.e. well before the ten years are up), it will have turned in to a black hole of debt with no/worthless security or repayments being made.


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