Tuesday 21 November 2017

NAMA should be sold off to a private equity investor – economist Peter Bacon

Independent.ie reporters

THE NATIONAL Asset Management Agency (NAMA) should be partly sold off to a private equity investor or international property company, its architect Peter Bacon has recommended.

He also said in a new report, commissioned by Treasury Holdings, that the state body designed to purge the banks of developer loans is not reaching its full potential.

Other recommendations from the economist include a new mortgage bank and a state investment bank to kick-start the economy.

Mr Bacon said that selling part of NAMA would provide the taxpayer with a better return.

He also called for a change to the way NAMA operates and the Government "should undertake a review of the business strategy of NAMA, including the statutory basis on which it is based," to determine the best return for the taxpayer.

“A continuation of recent Irish economic policy means consigning the economy to a vicious cycle of decline that will result in a stagnating economy for many years to come,” he said.

The mortgage bank would compete with commercial banks to provide mortgages for residential property buyers while the state-backed one would provide venture capital for companies.

The report was commissioned by Treasury Holdings which is currently involved in legal proceedings with NAMA and owes it over €1bn.

According to the report, entitled "A Contribution to the debate on the national recovery", a key to stimulating demand is growing consumer confidence.

A national mortgage bank would contribute to this as it would grow its loan book by offering competitive mortgages for residential purchase.

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