Waiting for credit to flow
Published 27/02/2010 | 05:00
WHEN selling the notion of a National Asset Management Agency, the Government repeatedly asserted that Ireland's crippled banks would start lending money again once their property loans had been acquired by the new agency.
Now, the European Commission's approval for NAMA coincides, to the day, with confirmation from the Central Bank that the amount of money being loaned in the economy is falling by the month and falling faster.
Credit is the lifeblood of business and the economy, and until the flow is restored, there can be no confidence that normal economic activity will resume any time soon.