Ireland property news: Controversial loan relief

16 September 2009

Bad bank loans in Ireland will be controversially purchased by the government.

The Irish government’s bank rescue plan - the National Assets Management Agency (Nama) – is designed to stimulate mortgage lending again.

Brian Lenihan, the minister of finance, is meeting with his cabinet today to decide the price at which Nama will purchase property loans from banks.

The bonds that will be issued to fund its purchase of loans is expected to be in the region of around £53bn, implying a one-third discount.

Various trade unions in Ireland, such as Siptu and the Technical Engineering, are expected to protest against the controversial Nama plans.

In a joint statement, TEEU general secretary designate Eamon Devoy and Siptu general president Jack O'Connor said: “The debts recklessly incurred by greedy bankers are being shifted onto the shoulders of the taxpayers while PAYE workers are being thrown to the wolves by the government.”

See Also:   Ireland, Marc Da-Silva, Mortgage