The Governor of the Central Bank has described the State's take-up of shares in Bank of Ireland as an 'untidiness' in the choreography of the restructuring of the balance sheets of the financial institutions.
Speaking at a meeting of the British/Irish Parliamentary Assembly in Cavan, Prof Patrick Honohan said NAMA was returning fair and honest valuations of the bank's loan books and that in time they would definitely require more capital.
Without recapitalisation the Agency would not work, he warned.
The British-Irish Parliamentary Assembly session on the prospects for economic recovery is being held in Cavan today and tomorrow.
The 20th anniversary of the assembly will be an opportunity for reflections on the future of a body, which many of its members privately admit now lacks a clearly defined role.
The body was established when the peace process was in its infancy as a link between the Oireachtas and Westminster; it has since expanded to take in devolved assemblies across the UK.
Its impact has been limited but the assembly has provided the only forum for parliamentarians to meet face to face in a relatively informal setting.
