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Business update from Ireland

Banking

The agency responsible for coordinating the Irish Government’s response to the unprecedented crisis in the Irish banking and property sectors, the National Asset Management Agency (NAMA), is now up and running. The first tranche of qualifying loans were transferred to NAMA at an average discount of 50 per cent to 60 per cent of the original loan values.

This involved the top fifty or so borrowers from the qualifying banks. NAMA has the right to acquire all loans of the relevant borrower irrespective of whether the loans are ‘performing’ or ‘non-performing’. In this way NAMA have control over both the ‘good’ and ‘bad’ assets of the relevant borrower.

It is anticipated the next fifty or so large borrowers will be transferred to NAMA by the banks in the next three months and that all qualifying loans in excess of €5 million will be transferred to NAMA by the end of 2010.

Each borrower is obliged to submit a detailed business plan to NAMA using a proscribed ‘data pack’. Once notified that a loan is to be transferred to NAMA the borrowers has 30 days to prepare and submit the detailed business plan required. Copsey Murray has been involved in this process with a number of borrowers and has developed the expertise to lead potential borrowers through this hazardous process.

Third country auditor registration

Meanwhile, the Minister for Enterprise, Trade and Innovation, Batt O’Keeffe TD has signed the European Communities (Transitional Period Measures in respect of Third Country Auditors) (Fees) Regulations 2010 into law.

The Regulations (which have been enacted via Statutory Instrument No. 251 of 2010) specify the fee to be paid by a third country auditor seeking registration under the transitional regime from the Irish Auditing and Accounting Supervisory Authority (IAASA).

As a result of the enactment of the Regulations, applicants seeking such registration under the transitional regime are now required to pay the IAASA a fee of €2,000, such fee being for the purpose of covering IAASA's costs.

If any of our UK partners would like to know more about these matters, please contact us.

Tony Kenny
Copsey Murray