The Taoiseach says it is likely that the Dáil will have to be recalled early in September to deal with the legislation setting up the National Asset Management Agency.

Brian Cowen told Labour's Eamon Gilmore that the legislation was a priority for the Department of Finance, but it was a complicated issue. Asked if legislation would be ready before the summer recess, Mr Cowen said it was more likely the House would have to be recalled in September to deal with it.

The Taoiseach earlier told the Dáil that the discount for assets to be bought from the banks by NAMA would depend on the quality of the assets. He said NAMA would decide on this, when it was up and running.

Speaking during Leaders' Questions, Brian Cowen also said there were EU guidelines on the issue. He was responding to comments from Fine Gael leader Enda Kenny, who said the banks were saying the discount for assets would be 20%, whereas the Green Party suggested it would be 40%.