Leadership

NAMA delayed by at least two months, says Fine Gael

11.11.2009
The Government’s National Asset Management Agency (NAMA) may be delayed by at least two months as EU Commission approval is required before the new agency can go ahead, Fine Gael said today.

The Minister for Finance Brian Lenihan TD confirmed to the Seanad today that EU Commission approval is still required before NAMA can start up its operations.

This will cause a lengthy delay of at least two months before NAMA is up and running, according to Fine Gael Seanad Justice Spokesperson, Senator Eugene Regan.

Regan also said that not only had the Minister confirmed that the NAMA Bill must be formally approved by the Commission, so too must the transfer prices and valuation methods of NAMA.

“When asked if the valuation methodology, including the figures, calculations and assumptions, have to be verified by the European Commission before the NAMA project could go ahead, the Minister was unequivocal in his response of: ‘Yes. Absolutely’,” Regan said.

NAMA not even close to reality
Regan said he had no doubt that the EU Commission, if it approves NAMA, will impose strict conditions in relation to valuations, haircuts and the divesting of banks’ assets as in the case of AIB and Bank of Ireland.

He also raised the question of whether Anglo Irish Bank would be allowed to enter NAMA under EU rules: “As no state aid is permitted for companies which are deemed to be unviable this raises serious question marks about the participation of Anglo Irish Bank in NAMA.

“The requirement for rigorous scrutiny and approval by the Commission makes the future of the entire NAMA project by no means certain,” Regan said.

“Contrary to what Fianna Fáil and the Greens would have us believe, NAMA is not even close to being signed, sealed and delivered, with a long way to go before the project becomes a reality,” he added.