Nama could move against defaulting property developers this year

The chief executive of Nama said today that the agency is prepared to move against defaulting property developers in the coming months if necessary.

Brendan McDonagh said that Nama has also made significant progress towards selling off €500m worth of properties.

Addressing a conference in Tralee, Brendan McDonagh said that the country is in the middle of the storm, but by February next, €81bn worth of problem loans will be with Nama.

He said that this process is key to banks returning to lending to the real economy and to the public drawing a line under the cost of rescuing the banks.

Mr McDonagh highlighted the speed at which we are acting, saying we are forcing the banks to take a bigger and more immediate hit than in other countries.

He also said that borrowers must pay down their loans in the taxpayers interest, but if any are incapable or unwilling to do so, Nama will move quickly to enforcement proceedings - this year if necessary.

Brendan McDonagh concluded that the cost of Nama and recapitalising the banks are difficult to comprehend and hard to swallow, but manageable by the State.