National asset agency - Details of loans should be released

The establishment of the National Asset Management Agency (NAMA) is probably the biggest financial gamble in the history of the State. Obviously, it is necessary to withhold final judgment on the overall plan until all the details are known and the legislation enacted.

While Finance Minister Brian Lenihan yesterday revealed that NAMA will pay €54 billion for €77bn worth of loans from the banks — representing a discount of almost 30% — there are other crucial figures that need to be disclosed.

Mr Lenihan also revealed the market value of the properties underpinned by the loans is approximately €47bn. This means the Government has put an estimated value of €7bn on the controversial long-term economic value of some of the properties, which has sparked much debate.