The Irish Times today (Dec 17th) features an excellent opinion piece (here) by Karl Whelan dispelling the myth of NAMA’s abilility to “get credit flowing”.  A number of recent developments in the “NAMA-story” outlined in the article give a glimpse of how the key actors have been weighing up the odds. In particular, the comments emanating from AIB and BOI indicate that their  interest in NAMA is along the lines of gaining perceived credibility in the eyes of the international financial markets rather than increasing domestic lending, while it seems the ECB wants to see the Irish government take an ECB-endorsed course of  action but without the ECB itself  being called upon to bankroll it. None of this augers very well for the general public, of course. What’s more, as Karl Whelan notes, it seems that the problem of undercapitalised banks (which NAMA was created to tackle) still hasn’t been addressed.

Declan Curran

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