Tánaiste Mary Coughlan has told the Dáil that legislation for the National Asset Management Agency will be drawn up in the next few weeks and the expectation is that it will be passed by the end of the summer session.
She was speaking during heated exchanges between the Government and opposition over the role and brief of the new agency.
Meanwhile, a report by economic consultant Peter Bacon on managing the economic crisis says it is hoped the agency will break the 'crony capitalist connections that impeded the transfer of assets from powerful developers'.
The report says the new agency is a preferable option to nationalising the banks.
The report also warns that taking over loans at a knockdown price may significantly worsen the capital position of the banks. It says this may require a further injection of capital into the banks and the new agency.
Mr Bacon says the new National Asset Management Agency has the potential to bring a better economic solution to the banking crisis.
