Property developer Paddy McKillen, who is challenging the transfer of his loans to NAMA, was described by Anglo Irish Bank as a successful, high net worth individual who could actively participate in Ireland's recovery, the Commercial Court has heard.

The Chief Executive of the Bank, Mike Aynsley, wrote to NAMA in June and said he was disappointed that Mr McKillen had become disillusioned, frustrated and alienated because of the proposed transfer of his loans and the lack of an explanation for this decision.

Mr Aynsley told NAMA that Mr McKillen, who owes €800m to Anglo Irish Bank, was someone who had the capacity to actively participate in Ireland's recovery.

He said only €5m of the money he owed to Anglo was for land and development loans.

Mr Aynsley urged NAMA to meet Mr McKillen and explain the rationale for its decision.

Anglo Irish Bank objected to NAMA's intention to transfer its loans to Mr McKillen into the agency.

The letter was read to the three-judge court this afternoon by Mr McKillen's Senior Counsel, Michael Cush.

Earlier, another Senior Counsel for Mr McKillen asked the court to refer a decision of the European Commission approving NAMA back to the Commission to clarify its meaning.

Mr McKillen's lawyers said a proper interpretation of the Commission's decision means that only borrowers who are impaired can be taken into NAMA.

Senior Counsel John Gleeson said that if the court found against them on that issue, they were formally asking that this issue be clarified with the Commission.

Mr McKillen has received sworn witness statements from a number of expert witnesses as part of his case.

Chief among them is Dr Joseph Stiglitz, a Nobel Prize winner and former chief economist and senior vice president of the World Bank.

He has sworn that in his analysis, the economic benefits of moving Mr McKillen's loans to NAMA are questionable at best.

He says Mr McKillen, the banks and the taxpayer are likely to be injured by such a move.

Dr Stiglitz says the claim put forward by NAMA that Mr McKillen's loans are a systemic risk is ‘nebulous’.

He says that in his opinion, the Irish economy would benefit most from leaving Mr McKillen's loans with the banks in which they currently reside.

He says that given the breadth of Mr McKillen's assets, the extent of diversification in his portfolio and the fact that his assets were assembled and financed over a three decade period, it is in the country's, the banks' and Mr McKillen's best interests for his loan portfolio to remain with the banks that originated the loans.

He says NAMA would need to conduct an extensive dialogue with Mr McKillen in order to understand the economic support for this.

Instead of engaging in such conversations however, NAMA has exercised its broad powers to purchase assets it considers eligible, even in the face of objections by banks or borrowers.

Dr Stiglitz says it is good policy for NAMA to gather information from borrowers who wish to make a case for staying out of NAMA.

If NAMA neglects to gather such information, it will almost surely make economic mistakes that hurt the State, the borrowers and the banks, he said.

It is expected that Mr McKillens's lawyers will finish their submissions to the court by lunchtime tomorrow.

After that, the Attorney General, Senior Counsel Paul Gallagher, is expected to begin outlining the State's case.