NAMA’s Killinascully economics

YOU don’t need to be an expert to get to grips with the Killinascully economics of NAMA.

The Irish banks borrowed billions off the European banks — money deposited by people like Hermann from Hamburg — and loaned it to the golden circle to develop “commercial” and “investment” properties to flog to you and me at vastly inflated prices.

Unfortunately they got caught with the last batch (mostly in fields in Offaly) still on their hands when it all crashed. Still, the European banks want their money back because, unfortunately, Hermann and Co have deposit guarantees which need honouring — so the European banks, via the ECB, are going to lend the Irish Government the value of this debt. The Government is going to give the cash to the Irish banks who will repay the European banks, who will honour Hermann’s deposits.