Architect of NAMA claims it is not functioning as intended

Architect of NAMA claims it is not functioning as intended

The man credited with inventing NAMA has told the banking inquiry it is not doing the job it was designed to do.

Dr Peter Bacon said the agency has focused more on chasing debts than on increasing the value of its investments.

Dr Bacon is giving evidence at the Oireachtas banking inquiry this morning, and claims NAMA hasn't done enough to increase the value of the assets it's taken over from banks.

"This is my personal opinion, based on what I've seen, no greater than that: it has acted more as a debt collection agency than as a property value maximising agency," he told the inquiry.

He also said banks should be prepared to offer longer-term mortgages, and there is no reason why a younger borrower should not be given the chance to repay a loan over 35 years.

Later today, Brian Lenihan's special advisor, Alan Ahearne, will also appear before the inquiry to give evidence about his economic reports on the housing market and his work on the foundation of NAMA.

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