ESRI calls for Irish banks to be nationalised

| April 30, 2009 | 0 Comments

According to Alan Barrett, a research professor at the Economic and Social Research Institute, Irish ministers should move to nationalise banks and end the uncertainty instead of buying property loans.

The focus needed is to end the uncertainty and Finance Minister, Brian Lenihan, plans to clean up banks by removing the bad debt built up by property developers and set up a National Assets Management Agency (NAMA), which will buy the loans from lenders.

Thus far during the financial crisis, the government has already nationalised the Anglo Irish Bank and has sanctioned a 7 billion euro bailout of the Allied Irish and Bank of Ireland.

Having already helped out the two biggest lenders, Lenihan has not ruled out providing extra capital if the banks need it.

However Barrett has said that the NAMA would not be enough to end the uncertainty and the threat of write downs and, as a result, nationalisation is the only real form of security.

Financier, Dermot Desmond, has said that although nationalisation is not the answer, NAMA must be closely monitored and loans should be carefully executed so as to maintain property prices.

Tags: , Irish, ministers,

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