Leading us on a merry dance
PROFESSOR Patrick Honohan may have given the English language a new term yesterday: "untidy choreography". This exotic phrase refers to the further delay in beginning the workings of the Government's solution to the banking crisis, the National Asset Management Agency (NAMA).
The end of March is now the target date for transferring loans valued at €77bn, but worth far less, from the banks to NAMA. The Government will pay a total of €54bn for these assets. It hopes that over a period of 10 years they will recover in value to the point where it will make a modest profit.
In addition to the Central Bank governor's comments, there was another important development yesterday, which illustrates some of the complexities and difficulties in the efforts to overcome the collapse of the banking system.