Government praised for creating ‘ingenious mechanism’ of NAMA

NAMA has been described as an “ingenious mechanism” by a top global analyst who said that the Government is showing determination with its actions.

There are several successful historical precedents to NAMA, where a new agency swaps banks’ troubled assets against government bonds, according to a report prepared by ratings agency, Moody’s.

Dietmar Hornung, vice president-senior analyst at Moody’s, said: “After the transfers, the banks will have much healthier balance sheets, albeit at the cost of substantial government ownership.”