LENIHAN TO DEAL WITH BAD BANK LOANS.

Finance Minister Brian Lenihan is looking at a major change to NAMA. This change will prevent banks from handing over their bad loads for cash from the government. Mr. Lenihan is also expected to release more information on the NAMA purchases next month. For right now he is looking at everything everyone including the Green Party had to say about NAMA and is making changes where he sees they would actually work better. For right now it appears that instead of giving the banks a lump sum up front for the bad loans that part of the payment would be held back and only paid if NAMA’s assets were giving a return. This will help prevent overpaying for the assets. The government has agreed with Mr. Lenihan and has decided to press ahead with establishing the National Asset Management Agency(NAMA). NAMA is being termed “bad bank” solution for managing toxic development loans.