IMF supports NAMA despite reservations
Monday, 8 February 2010
The Government has said the International Monetary Fund is supportive of the National Asset Management Agency despite the fund expressing reservations about whether it would lead to an increase in lending.
The IMF also told the Government it is concerned that Ireland could face a rise in mortgage arrears.
In a meeting last April, the IMF also said it did not believe NAMA would lead to a significant increase in bank lending in Ireland.
A Freedom of Information request to The Irish Times reveals the IMF did not believe NAMA would result in a significant increase in bank lending. That flies in the face of what the Government has been saying about the new agency.
Today the Department of Finance stressed the IMF has given its full backing to NAMA.
The Department says the IMF agreed with Minister for Finance Brian Lenihan that NAMA would not lead to a surge in lending to re-inflate the property boom.
The Government says legislation to set up the agency allows the minister to issue directions to banks to facilitate the flow of credit.
Fine Gael said the new developments showed the party was right to oppose NAMA from the start.
- Nine News: Sean Whelan, Economics Correspondent, reports that the Department of Finance has insisted that the International Monetary Fund is continuing to support NAMA
- Six One News: Sean Whelan, Economics Correspondent, reports that Fine Gael say the reservations justify their opposition to NAMA
- One News: David Murphy, Business Editor, reports that the IMF supports NAMA, despite its earlier reservations about whether it might lead to an increase in lending
