Ireland: Most small firms now expect Nama to fail

www.independent.ie

ALMOST two-thirds of Ireland’s small business owners are not betting on the €90bn Nama gamble paying off.

A decisive 64.7 per cent of bosses do not believe Nama will sort out the problems in the financial sector. This startling finding of the Sunday Independent Business Owners poll comes only 10 days after the Government published draft legislation to set up the bad bank.

Less than 30 per cent of those surveyed believe Nama will be successful. The rescue plan for the banks, which gives Nama powers to take over land and development projects from borrowers who are not keeping up with their repayments, will end up costing taxpayers dearly if it fails. Almost €90bn of toxic loans will be transferred across to Nama and it is as yet unknown what kind of discount it will get when it buys loan books from the banks.

The more Nama pays for each loan, the greater the potential loss for the taxpayer. The less it pays, the greater the hit for the bank — and the greater the need for the Government to bail it out. Read full article…

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