Developers have secured €250m in facilities for further development from Nama, according to informed sources who said that some of the loans would not have been advanced if the state asset agency could have avoided doing so.

Nama bought the loans at a discount, but inherited letters of credit from the banks, meaning they have to extend additional monies to complete development. The bad property loans management agency is mainly advancing monies to developers to complete projects that have been pre-sold.

Finance sources said that the banks are challenging a large percentage of the valuations which have been given by Nama.

It is known that 80% of valuations provided by the participating financial institutions are being accepted by Nama, but that a significant number of the remaining 20% will go to a valuation panel because the bank and the Nama valuations are within 12.5% of one another. The Department of Finance is expected to set up that panel next year after the transfers are completed.

Meanwhile, the Department of Finance is expected to publish Nama's second-quarter results next week. They are likely to show a profit but the department was not in a position to comment last week.

However, the number of performing loans is about 30% in part because Nama told the developers that they would have to hand the money over to the loan management agency instead of pocketing it themselves. This makes Nama's €1bn profit target more realistic.

Developers say they have been told by Nama that they will be given a set figure to run their office, which can be allocated as they see fit provided it adds value to their team. Some developers had taken a 50% pay cut but have been told that that is not enough because they are still overpaid. The total amount available for the developers' teams will be up to 75% less than previously.

Six of the top 10 developers have been told by Nama's executive board the recommendation that has been made in relation to their business plan, sources say. Those advocating holding their assets for five to seven-years have been told they will not be allowed do so as Nama will not take a view of the future performance of the market. As a result they will have to sell some assets. Under the process, those developers who disagree with the decision have four weeks to put forward a counter-argument which Nama will then review.

Meanwhile, Irish Nationwide is believed to have been the worst offender in offering 100% non-recourse loans to developers when the total size of the loan book is taken into account. "The borrowers simply had too much power," sources said.