Login >>>   Training | Consultancy | Membership Benefits | Training on Demand | Journal |Contact Us 

National Asset Management Agency Bill 2009 ( NAMA)

Full (Revised) Draft Legislation 10/09/2009 .pdf >>>

The Bill proposes to give NAMA extensive powers to take over land and development loans from banks in an effort to get them lending again and supporting economic recovery.

The paper value of property and development loans NAMA is planning to take over from the banks is €90bn, however the current market value is far less. NAMA will pay the banks somewhere between those two figures, as it is required to take into account the long-term economic value of the property concerned.

Each loan will be valued separately, taking into account the quality of the collateral and the likelihood of getting a return.

Over time, NAMA hopes to manage and then sell off the properties to get its money back.

The full cost will not be known until the process of taking over the loans is completed some time next year, but the Minister for Finance, Brian Lenihan, will give an estimated total cost when the Dáil begins debating the legislation in September.

The legislation gives NAMA extensive powers and limits the opportunities to legally challenge its work.

The Government has said the developers who borrowed the money in the first place will still be liable for the full cost of the original loan and will be pursued by NAMA if they default.

Join the Association of
Purchasing and Supply >>


Purchasing and Supply Chain Management Vacancies

NCB Purchasing Managers Manufacturing Index