EC approves NAMA

The European Commission has approved the Government's bank rescue plan the National Assets Management Agency.

The EC said NAMA is in line with EU state aid rules.

It is expected that the agency will transfer the impaired loans off the balance sheets of the country's banks by March.

Speaking in Brussels the Commissioner for Economic and Monetary Affairs Olli Rehn said that the European economy is getting back on track.

However Spain and the UK will see a contraction of their economies in 2010.