NAMA offers hope to ailing house market
THERE was a glimmer of good news yesterday for the two extremes in the housing market -- those struggling to repay mortgages; and those willing and able to take on a new one but who find the banks are not forthcoming.
Looking at AIB's horrific figures yesterday, one can see why the bank would be unable to provide credit, even to low-risk borrowers. It is harder to see why it and the other banks kept insisting there was no problem.
Not only did AIB have €10bn of losses last year, it lost €22bn of its deposits and had to replace them with very short-term loans from the ECB. These are not circumstances in which credit is going to flow.