NAMA

The government is implementing a new initiative in October 2009 called NAMA (National asset management agency) which is similar to a debt collection agency. This new initiative involves the banks giving €80- 90 billion of development loan debts to the National Asset Management Agency with the agencies objective being to collect as much money from those loans as possible in terms of interest and capital over the next number of years. NAMA is putting some companies at serious risk if they are not able to pay as NAMA will seize their land and assets and probably force the company into bankruptcy. NAMA could also have a positive impact on companies if they decide to let the interest build up until our economy becomes more stable. Debt collectors are usually thought of with poor regard just like Ebenezer scrooge was in Christmas carol. It will be interesting to see NAMA’s strategies and the positive or negative effect it has on companies.