Nama has redeemed a further €2 billion in bonds, bringing the total repayment to date to €3.25 billion, as its chairman predicted further repayments were on the cards.

The agency borrowed the borrowed money through the issuing of State-backed bonds to buy toxic property loans from the banks.

When the repayment of €299 million in advances made to the agency by the Minister for Finance is taken into account, the State’s so-called “bad bank” has cut its indebtedness by more than €3.5 billion in the past two years.

Chairman Frank Daly said Nama had a strong cash position, meaning that additional debt repayments were likely before the end of the year. He also said the agency was “well placed” to meet its repayment target of €7.5 billion of senior bonds by the end of next year.

Nama issued €30.5 billion in bonds to purchase loans with a face value of €72.3 billion from five financial institutions. Some 5 per cent of the debt issued by Nama was subordinated bonds which will only be repaid if it makes a profit after 10 years.