Minister for Finance Brian Lenihan insisted this evening the National Asset Management Agency (Nama) was not a “bail-out” for banks and developers.
Draft legislation was published today that will enable the agency to buy up loans at a discount and chase debts.
Mr Lenihan insisted that the plan was not designed to protect the big builders at the centre of the country’s property bubble.
“There is nothing in the proposed Bill that will provide a ‘bail-out’ for borrowers, whether builders, developers or otherwise,” Mr Lenihan told a press conference at Government Buildings.
“Anyone who owes money before Nama continues to owe it, and is expected to repay the full amount of the debt.”
The Nama plan will be open for consultation until September when the Dail returns after the summer recess.
“It’s essential that the banks are in a position to be a motor of credit in our economy,” Mr Lenihan said. “We all know the numerous problems that have affected Irish banks - indeed have affected banks throughout the world – and a common framework of international standards now governs within the European Union on how you deal with the difficulties.”