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.
