The Attorney General has told the Commercial Court that developer Paddy McKillen cannot repay his bank loans.

Mr McKillen is challenging the transfer of his loans into the National Asset Management Agency. He says the loans are performing and the association with NAMA will damage his business.

Senior Counsel Paul Gallagher said Mr McKillen owed €2 billion. He said that was not a sum he could pay back today or tomorrow, and he had not given the court any date on which he could pay it back.

The court was told that, since 2008, some of Mr McKillen's loans have expired, meaning he has to pay them back. He cannot repay them, Mr Gallagher said.

The Attorney General said he did not know of anything more fundamental in terms of non-performance and impairment of loans than an inability to pay back the money.

He said Mr McKillen had not revealed that some of his loans were due to be paid back when he first swore a statement and took this case in July. Responding to a question from Mr Justice Peter Kelly about whether Mr McKillen's first affidavit had been deliberately misleading, he said there had been non-disclosure of a material kind and this was a matter of very serious concern.

Earlier, Mr Gallagher said the sworn statements by experts, including one by Nobel-prize winner Dr Joseph Stiglitz, did not recognise that the property market is not liquid. He said they were based on an incorrect premise that is not in the NAMA legislation.