Skip to main content

It's So Toxic...

Government to publish Nama legislation today...

The Government will today publish legislation setting up the controversial National Asset Management Agency (Nama), the State’s new toxic assets agency.

The €90 billion “bad bank” scheme will use Government bonds to buy property loans at a discount from banks, which will then be able to cash the bonds with the European Central Bank.

The draft legislation will be published at 5pm today on the Department of Finance website, but the Government intends to amend it next month when it is debated by the Oireachtas.

The complex draft laws run to 150 pages and contains more than 200 sections.

Nama will operate under the aegis of the National Treasury Management Agency.

Banks will have one chance to appeal the price put on their loans by Nama to “a valuations panel”, which will advise the Minister of Finance Brian Lenihan, but the final decision will be his, the Department of Finance has said.

Officials expect that loans to the 50 largest property developers, worth some €30 billion, will be moved into the new agency by December.

Meanwhile, the department again made it clear that the State would buy controlling stakes in Irish banks if property asset losses wipe out their capital after the bad, or distressed loans have been taken off their books.

The decision to establish Nama was announced by the Minister in his budget statement of April 7th, “with a view to addressing in a comprehensive way the problem of impaired or potential impaired assets in the banking system”.

Speaking ahead of the publication of the legislation today, economic consultant Dr Peter Bacon, who is the architect of the bad bank plan, said he was confident about the contribution NAMA would make to the economy.

"We cannot go back to exchanging beans. A banking system, an efficient one that meets the needs of a growing economy is needed," said Dr Bacon on RTÉ's Morning Ireland .

"(Ireland) cant afford not to have an efficient, functioning banking system. If we went that course the result would be a stagnant economy into the long term future," he added.

The Irish Banking Federation (IBF), which represents all the major Irish banks, said NAMA was critical important in safeguarding financial institutions.

"All of the banks will co-operate with NAMA to whatever degree is necessary in order to make the project a success," said Pat Farrell, chief executive of IBF.


Report - Irish Times

Popular posts from this blog

Ireland's Celtic Tiger Excesses...

'Bang twins' may never get to run a business again... POST-boom Ireland is awash with cautionary tales of Celtic Tiger excesses, as a rattle around the carcasses of fallen property developers and entrepreneurs will show. Few can compete with the so-called Bang twins for youth, glamour and tasteful extravagance. Simon and Christian Stokes, the 35-year-old identical twins behind Bang Cafe and exclusive private members club, Residence, saw their entire business go bust with debts of €9m, €3m of which is owed to the tax man. The debt may be in the ha'penny place compared with the eye-watering billions owed by some of their former customers. But their fall has been arguably steeper and more damning than some of the country's richest tycoons. Last week, further humiliation was heaped on them with revelations that even as their businesses were going under, the twins spent €146,000 of company money in 18 months on designer shopping sprees, five star holidays and sumptu...

Young, Irish And Out Of Here...

As the government continues to pump billions into our much discredited banking system, many Irish people unable to find work here are facing into a future outside of this country. John Downes, News Investigations Correspondent, spoke to some of the new Irish diaspora about their recent experiences of emigration... By any stretch of the imagination, they were a startling set of figures, prompting echoes of a past which we thought we had left behind. According to ESRI data released last week, we can expect net emigration of 60,000 in the year to this April – and a further 40,000 by April 2011. That's almost 1,000 of our best and brightest leaving every week. Yet the ESRI's predictions are simply the latest – if most stark – indications of a return to mass emigration among Ireland's unemployed, as the downturn has continued to take its toll. In September, for example, the Central Statistics Office revealed that Ireland witnessed a return to net emigration for the first time si...

Property Tycoon's Dolce Vita Ends...

Tycoon's dolce vita ends as art seized... THE Dublin city sheriff has seized an art collection and other valuables from the Ailesbury Road home of fallen property developer Bernard McNamara. The collection will be sold to help pay his debts. The sheriff, Brendan Walsh, is believed to have moved against the property developer within the past fortnight, calling to his salubrious Dublin 4 home acting on a court order to seize anything of value from his home to reimburse his creditors. The sheriff is believed to have taken paintings from the family home along with a small number of other items. The development marks a new low for Mr McNamara, once one of Ireland's richest men but who now owes €1.5bn . The property developer and former county councillor from Clare turned the building firm founded by his father Michael into one of the biggest in Ireland. He is the highest-profile former tycoon to date to be targeted by bailiffs, signalling just how far some of Ireland's billionai...