Taxpayers’ €50bn may not bring immediate improvement in credit flows from banks

IT is far from certain that the projected injection of €50 billion in taxpayers’ money into Irish banks will result in an immediate improvement in the flow of credit to struggling Irish businesses.

Energy and Communications Minister Eamon Ryan said the setting up of NAMA was “the most effective way of getting money back into the banking system”.

But banking sources were less certain that the money they get for their property assets would be immediately lent on to customers.