Dáil to continue debating Nama legislation

The Dáil debate on the Government's controversial Nama legislation will resume today as experts continue to examine the detail of the plan to buy toxic bank loans with taxpayers' money.

Yesterday, Finance Minister Brian Lenihan revealed that Nama would spend €54bn buying impaired loans that were once worth around €77bn.

Mr Lenihan claimed the loans have a current market value of €47bn and that property prices would only have to increase by 10% in the next 10 years for NAMA to break even.

However, some economic experts believe this €47bn valuation is fanciful.

A breakdown of the figures reveals that €28bn of the €77bn in toxic loans are held by Anglo Irish Bank, which lent massive sums to property developers during the boom.

Some €24bn of the loans is held by AIB, €16bn by Bank of Ireland, €8bn by Irish Nationwide and €1bn by EBS.

Speaking in the Dáil yesterday, Mr Lenihan said he expected the banks to start providing credit to businesses again as a result of the plan.

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