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The “bad bank” established in the wake of Ireland’s property crash has now recouped 95 per cent of the money it spent bailing out Ireland’s banks, in the latest sign of the country’s transformation into the eurozone’s strongest economies.

The National Asset Management Agency issued €30.2bn of state-backed bonds in 2010, which it used to take over risky property loans held by local banks. The purchased loans had an original book value of €74bn, but many observers at the time were sceptical that Nama would be able to recoup much of the money the government was forced to spend.

However, Nama announced today that it had redeemed a further €1.09bn of senior notes, bringing the total redeemed to €28.69bn.

Nama said last month that it is on track to redeem all of its senior debt by the end of this year, ahead of its earlier target of 2020, and now expects to return a profit to the state of €2.2bn.

The agency has yet to silence all of its critics, however. The restructuring of developers’ debts has left Nama a significant owner of Irish real estate, and its transformation into a quasi-property devoloper led many to blame it for exacerbating Ireland’s severe housing shortage.

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