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The Fund of Problem Loans entered into the Memorandum of Understanding with the National Asset Management Agency of Ireland

23 August 2023

On August 10, 2023, the Fund of Problem Loans JSC and the National Asset Management Agency of Ireland (NAMA) entered into the Memorandum of Understanding to strengthen cooperation and interaction in the process of experience and knowledge share in the field of distressed asset regulation.

The Memorandum of Understanding was signed during a working trip of the Fund's employees to Dublin, Ireland, to study the experience of NAMA, one of the most successful cases of the world practice of state-owned AMCs functioning.

The signatory on behalf of the Fund was Alen Abdaliyev, Director of the Corporate Development Department, and on behalf of NAMA, Jamie Bourke, Chief Strategy and Transformation Officer, and Noelle Condon, Chief Financial Officer. 

During the meeting, the parties also presented key areas of their activities, approaches to asset managing and divestment.

Like the Fund of Problem Loans, NAMA was created in response to the aftermath of the 2008 Global Economic Crisis that had a negative impact on the Irish banking system.

The majority of NAMA's acquired portfolio was backed by commercial real estate and land collateral, enabling the company to develop a more focused and effective management strategy.

To date, the agency has successfully involved most of its assets into the economy, including through the implementation of investment projects, fully ensuring the return of borrowed funds.

The effectiveness of NAMA was facilitated by a commercial focus, enshrined in law, a sales strategy aimed at increasing the future value of acquired assets, as well as complete independence from political influence.

In general, the experience of NAMA is an interesting example, since the organization has managed to maintain a balance between the observance of the state interests, the rehabilitation of the borrowers' business, the infrastructure improvement through the implementation of development projects and the return of public funds.

More information about the activities of NAMA can be found at the link (on russian).