Shares in Irish banks were higher today after yesterday's publication of the draft legislation to set up the National Asset Management Agency, NAMA.
This evening in Dublin, shares in AIB closed up 2%, Bank of Ireland finished 9% ahead and Irish Life & Permanent gained 5%.
The Minister for Finance, Brian Lenihan, has said that one of the most crucial aspects of NAMA - how much it will pay for the assets it takes over from developers - is almost finalised.
On Morning Ireland, the Minister said he would be in a position to disclose what NAMA is prepared to pay for the properties and other assets of borrowers who owe billions to the banks, when the Dáil returns in mid-September to debate the proposed legislation setting up the agency.
The NAMA plan is designed to fix the liquidity problems of the banks, by taking property and development loans off their balance sheets. NAMA will buy these loans at a discount, and then gradually sell them off.
NAMA will have the ability to borrow up to €10 billion to finish uncompleted developments which it acquires.
The new agency will be able to sell, retain or finish property assets it will take over as part of its mission to clean up the balance sheets of the banks.
Two-thirds of the properties to will be acquired by Nama will be in Ireland, while the bulk of the overseas assets are in Britain.
The Dáil will debate the draft legislation in September, but in their initial response opposition parties were critical of the whole concept.
Fine Gael's Richard Bruton said the taxpayer was being asked for an 'enormous blank cheque' with very little independent oversight. Labour's Ruairi Quinn said there were plenty of safeguards in the draft Bill for banks and developers, but very few for the interests of taxpayers.
And Sinn Féin's Arthur Morgan descried the plan as 'the crime of the century', with an immeasurable burden of debt on future generations.
