Emmet Oliver: For all its work, agency will still need an upturn
DESCRIBED as a bailout for banks and developers and a toxic skip, NAMA is starting to have the opposite effect on the Irish banking system.
By adopting a tougher-than-expected stance on loan values, the agency is punching huge gaping holes in the balance sheets of the main banks and forcing them to seek emergency capital injections from the government.
NAMA's critics feared it would be a rather tame creation, unwilling to truly discount the loans and hit the banks where it hurts -- at the balance sheet level. These critics were expecting NAMA to impose a 30pc discount on loans, with some even lower discounts.