GREEN senator Dan Boyle: Party lacks confidence in NAMA solution

August 25, 2009 by Infowars Ireland

www.irishexaminer.com

GREEN senator Dan Boyle has admitted his party lacks total confidence in the Government’s proposal to resolve the banking crisis.

Confidence would have to be “earned”, he said, and a crucial part of that process would be improving the legislation to establish the National Asset Management Agency (NAMA).

The legislation will go before the Dáil next month, with amendments expected to be made in October. The Greens will convene twice before the legislation is finalised to see whether members support it and, if so, what improvements they want to see.

Mr Boyle reiterated some of the concerns which he and other party members have about the legislation yesterday. When suggested to him that he lacked confidence that NAMA was the right answer, Mr Boyle said: “Given the situation that we find ourselves in, and the fact that how it’s come about in such a whirlwind-like fashion over the last 18 months, confidence is something that has to be earned.

“We are in very uncertain territory. We have to make sure that the process is right so we get the results right,” he told RTÉ.

NAMA will take €90bn of property loans from the banks. A key issue is how much the agency pays for the loans. A discount is certain, but the Government has said the price will be based on the long-term economic value of the property underpinning the loans rather than the current market value, which has sparked fears that the taxpayer will be hit with massive losses.

Asked if this was, in effect, a Government punt with taxpayers’ money, Mr Boyle responded: “It’s an expectation that markets go up as well as go down. The variable is we don’t know over what time period that would happen.” Read full article…