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President signs NAMA in to law - 23-Nov-2009

President signs NAMA bad bank in to law

President Mary McAleese has signed the legislation establishing the National Asset Management Agency (NAMA), a "bad bank", allowing the government to start cleaning up banks' balance sheets. The government, which has already been recruiting staff for NAMA, can now formally launch the agency that will pay E54 billion to cleanse banks of risky commercial property loans.
The Dail approved the legislation 10 days ago after a protracted debate whose sluggishness contributed to repeated selloffs in the shares of top lenders Allied Irish Banks and Bank of Ireland.
McAleese still had the option to send the bill to the courts to check its constitutionality, which would have caused further delays. Her office confirmed she had signed the law, without giving any details about her decision.
Finance Minister Brian Lenihan has indicated NAMA would start taking the biggest loans from banks in January, clearing the way for them to raise fresh capital to plug the hole after the transfers, from a variety of potential sources including state injections.
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