NAMA

This blog post will be about NAMA, which stand for National Asset Management Agency. It is a body that is due to be created by the Irish Government by the end of this year and it is going to acquire property development loans from Irish banks in return for government bonds. The banks concerned are AIB, Angle Irish Bank, Bank of Ireland, EBS Building Society, and Irish Nationwide. This is with a view of improving the availability of credit in the Irish economy. NAMA will buy bad loans from the banks at a reduced price maybe somewhere that it is between 50-70% of their original value. They won't be paying to much for these particular loans as the assets that are gauranteeing these loans have reduced in value. NAMA will pay 54 billion euro for 77 billion worth of loans advanced by 5 banks. 2,000 bank customers will have their loans transferred to NAMA. 

There has been many criticisms of the entire thing, both from politics and academia. I do not have an opinion because i don't fully understand everything about it so for now i am indifferent. I just hope it is for the benefit of our economy and that no silly decisions are going to be made in haste

http://en.wikipedia.org/wiki/National_Asset_Management_Agency

http://www.boards.ie/vbulletin/showthread.php?t=2055644732

http://www.irishtimes.com/newspaper/ireland/2009/0917/1224254726800.html