Lenihan: Developers will not escape huge debts

PROPERTY developers owing huge sums to the banks will not be able to escape repayments when the state takes over these loans, Finance Minister Brian Lenihan said.

“The borrower owes what the borrower always owed,” he said, adding that the National Assets Management Agency (NAMA) will be more powerful in reclaiming the sums owed than the banks have been.

At a press conference announcing the draft legislation on the state’s so-called bad bank scheme, Mr Lenihan said “there is nothing in the proposed bill that will provide a bail-out for borrowers whether builders, developers or otherwise.”