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Nama black list for debt builders.

Byline: AINE HEGARTY

NAMA will draw up a black-list of developers to prevent them snapping back their own bad debt properties at bargain basement prices, the Finance Minister vowed yesterday.

Brian Lenihan insisted wealthy builders will not profit from the EUR90billion gamble he is taking with taxpayers' money to clear toxic debt from Irish banks.

He said: "There will be a list of delinquent developers who cannot acquire assets from Nama."

Shares in Irish banks rose sharply yesterday after the Government revealed details of how Nama will work.

Mr Lenihan said the state will be paying market-value prices for some of the properties it is taking over.

The Finance Minister added: "There are some assets that will not go beyond their market value."

He said an overall figure the taxpayer is paying to take over dodgy developer debt will be revealed next month when Nama legislation is debated in the Dail.

Mr Lenihan added: "This is a very substantial exercise on behalf of the state to the taxpayer and the greatest of care must be taken in arriving at a final figure."

He said Nama would not be used to benefit property developers or banks.

The Minister added: "If you look at the historic value of the properties secured by all these loans then, clearly if you take them at a peak in 2006, there's been a considerable reduction in their value since.

"The whole nature of this operation is that it is the developer and the bank that takes the first hit, not the taxpayer."

The Taoiseach insisted taxpayers would be exposed to even greater risk if the state did not set up Nama.

Brian Cowen said: "Doing nothing is not an option. We've got to ensure credit begins to flow again into the Irish economy. It's protecting jobs, savings, deposits and ensuring we get the best possible value for the taxpayer from this situation."

Siptu wants taxpayers to get a dividend for the EUR90billion put into Nama.

Union chief Jack O'Connor said: "The legislation could include a provision that would require Nama to discharge a social obligation so that society, which is assuming the burden of all this risk, derives a dividend from it."

CAPTION(S):

ACTION Finance Minister Lenihan RESCUE PLAN Taoiseach Brian Cowen yesterday
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Publication:The Mirror (London, England)
Date:Aug 1, 2009
Words:378
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