Toxic bank plan 'not a bail-out', says Lenihan

The Irish Government tonight unveiled a toxic bank plan to take over billions worth of failing property deals, with Finance Minister Brian Lenihan insisting it was not a bail-out.

The Government tonight unveiled a toxic bank plan to take over billions of euro worth of failing property deals, with Finance Minister Brian Lenihan insisting it was not a bail-out.

The draft legislation will allow a state body - the National Asset Management Agency (Nama) - to buy up loans at a discount and chase debts.

However, Mr Lenihan insisted that the complex yet controversial plan was not designed to protect the big builders at the centre of the country's property bubble.

"There is nothing in the proposed Bill that will provide a 'bail-out' for borrowers, whether builders, developers or otherwise," Mr Lenihan said.

"Anyone who owes money before Nama continues to owe it, and is expected to repay the full amount of the debt."

The Nama plan will be open for consultation until September when the Dáil returns after the summer recess.