Lenihan: Government will use its authority to get banks lending again

FINANCE Minister Brian Lenihan has warned the Government will use its powers under NAMA to ensure banks start lending to cash strapped businesses.

Mr Lenihan disagreed with comments to an Oireachtas committee on Wednesday by outgoing CEO of AIB Eugene Sheehy that credit would not flow automatically once NAMA was set up.

The minister said: “The Government has taken specific powers in the NAMA legislation to make credit available to support the economy. Those powers are in the legislation; the president has signed it.”