NAMA has become a buzz word over the last year. Although it has been said hundreds of times on the news and in newspaper articles I still up until today never actually knew what it meant and what it was developed for. I was under the impression that NAMA was the governements answer to the recession and that by some sort of miracle it was going solve Irelands recession. This is probably the assumption that the government want people to make but for those of you who are as much in the dark as I was this blog is should help!
NAMA stands for the National Asset Management Agency. The government developed the asset management agency to deal with assets that have been transferred from banks. However, NAMA itself is not a bank, it will only be taking on bad(non performing loans) and good (performing loans). These loans are not necessarily in monetary terms, they are physical assets such as land and property.
So in effect NAMA is going to take over all of the six banks loans that could reach in the value between €80 to €90 billion. The government hope that by doing this that it will enable the banks to continue lending. But to date I don't see how NAMA has helped Ireland in the recession. The banks are still in debt even after these loans have been taken over by NAMA and its up to the tax payer to foot the bill.... again!!!
So basically the government introduced NAMA to solve all of Irelands problems and as usual it hasn't. The economy is still in the same state if not even worse than last year...
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